The Electricity Distribution Companies in Nigeria (DisCos), under the ages of Association of Nigerian Electricity Distributors (ANED) said yesterday that from 2013, the funding gap in the power sector is now over N300billion, the nation reports.
The Executive Director, ANED, Sunday Oduntan,who spoke to newsmen in Abuja, urged the Federal Government to create mechanisms to drive further investments into the sector.
Oduntan said a fair Multi Year Tariff Order (MYTO) was meant to cushion the impact but has not been cost reflective until the recent one signed in December last year.
He also urged the federal government to strengthen transmission services by doing a proper concession on managing and investing in the Transmission Company of Nigeria (TCN).
He explained that the Discos can distribute over 10,000megawatts (Mw) but are constrained by inadequate transmission infrastructures citing instances of poor allocation to Kano DisCo.
Oduntan said TCN requires about $7billion to construct a new 10,000Mw grid and another $1.2billion to fix the existing grid.