The Association of Nigerian Electricity Distribution Companies (ANED) said that the call for a reversal of the privatised power sector by the President of Dangote Group, Aliko Dangote is reckless.
The Federal Government privatised the power sector on Sept. 30, 2013, following the privatization process initiated by the Goodluck Jonathan regime, divested its shares from the Power Holding Company of Nigeria.
The company was divided into separate companies or entities called Local Electric Distribution Companies or Local Distribution Companies (LDC).
Each company is responsible for handling electricity distribution in each state or region.
In May 2016, the structure of the companies consisted 11 distribution companies (DISCOs), six generation companies (GENCOs) and one Transmission company (TCN), all being regulated by the National Electricity Regulatory Commission (NERC).
However, Mr Sunday Oduntan, the Executive Director, Research and Advocacy of the ANED, condemned Dangote’s view in a telephone interview with the News Agency of Nigeria (NAN) on Tuesday.
Dangote recently called for the reversal of sales of facilities in the power sector when he featured as a guest lecturer at the National Institute of Policy and Strategic Studies (NIPSS), Kuru, Plateau.
He had said the sector’s privatisation by the Federal Government was done wrongly and suggested that it should be reversed in the national interest.
Dangote said challenges in the sector had persisted in spite of the privatisation.
He had also stated that the new owners lacked understanding of the sector.
Reacting to the suggestion, Oduntan said it was too early for Dangote to conclude that the privatisation of the sector was a failure, noting that the sector was just three years post–privitisation.
He said the decades of wrath in the sector could not have been eradicated in just three years, adding that the entire value chain was committed to improving electricity in spite of the challenges.
Oduntan said Dangote’s call was hinged on his earlier unsuccessful bid in 2013 to become a major player in the privatised sector.
He also said the business mogul had been a major beneficiary of government’s privatisation policy over the years.
He said, “Dangote wanted to take over this business but he failed in 2013. He is a good man , but it is suprising that someone like Dangote is calling for re-privatisation of the power sector; he is a product of privatisation.