•As Senate plans investigative hearing on tariffs
From Fred Itua, Abuja
The federal government, on Monday, said plans are underway to revoke and take over Distribution Companies (Discos) in the country that are neck-deep in debt and are unable to effectively perform their roles.
It said any of the Discos currently managed by the Asset Management Corporation of Nigeria (AMCON) and commercial banks over their inability to service their loans, will be retaken by the federal government, through the Federal Ministry of Power.
Minister of Power, Adelabu Adebayo, said this when he briefed the Eyinnaya Abaribe-led Power Committee that visited his office during an oversight function in Abuja.
This is even as Abaribe revealed that the Senate, will next Monday, conduct an investigative hearing on the recent electricity tariff hike by the federal government, without due consultations.
The Minister said the federal and state governments combined have 40 percent stakes in all the Discos, revealing that going forward, they’ll be more involved in the operational processes
He said the power sector is crisis-ridden and has existed for over 60 years without permanent solutions on how to fix the mess. He said the crises have defied known solutions, but quickly urged Nigerians be patient.
He said: “Power drives economic growth and development. No sector can perform without stable power. The power sector is crisis-ridden. We were born into this crisis. These crises have defied any known solutions in the last 60 years. No sector of the economy or part of the country has enjoyed power. We plan to break the jinx.
“We’re taking the right steps in the right direction. We only need to endure the reforms we are carrying out. When we are done, people will enjoy it. Our major issue in the power sector is that of liquidity. We are in debt. Customers are not allowed to pay the market value for what they consume.
“The federal government is owing power companies a out N1.3 trillion in subsidy. We are owing then $1.3 billion for gas supply. We have only 13,000 installed capacity megawatt electricity. But as a country, we have never generated more than 5,000 megawatts.
“Distribution companies are not demanding for enough power from generation companies. Discos still owing commercial banks will be sold off to technical owners. We will also break these Discos on state basis.
“We have left the sector for too long in the hands of the private sector. We still have 40 percent stakes. We will move in.”
Abaribe on his part, said: “We are here on an oversight visit. Pursuant to a resolution of the National Assembly, we have already invited the Minister and other stakeholders of the Ministry over the payment for power by Nigerians.
“I am saying this so that in the course of discussion, nobody will delve into the issue of power tariffs. There is already ongoing hearing by the National Assembly on that issue. And that will hold on the 29th of April this year.”
