The federal government has explained that it sacked the core investors and management of six of the 11 electricity distribution companies (DisCos) in the country because they failed the nation.
Minister of Power, Engr Abubakar Aliu, who disclosed this yesterday in Abuja while making presentations at the 11th edition of PMB Scorecard, said the federal government took the decision to sack the core investors and allow the lenders to take over because their performance was abysmal.
He named the six DisCos to include Abuja, Benin, Ibadan, Kaduna, Port Harcourt, and Kano, adding that the other three, Ikeja, Eko and Enugu are doing very well. He also noted that Jos and Yola DisCos which were concessioned in 2022 and 2021 respectively are just trying to find their feet and therefore needed time to settle down.
Engr. Aliu also disclosed that the banks who are now holding 60 per cent equity in the DisCos are not going to hold it permanently because they are not in the business of providing electricity. “So we have given them between six months and one year to find new buyers who are serious to takeover the 60 per cent,” he said.
According to the Minister who reeled out what he called the numerous achievements of the present administration in the power sector, “This administration would be leaving behind a healthier power sector than we met. With the new investments that we have made and is still making, by the time we leave next year, we would have added an additional 4000 megawatts of electricity to the 17,000 we currently have, bringing the total to 21,000 megawatts.”
Answering questions on the cost of electricity in Nigeria, the PowerPoint Minister said, there is nothing the government can do because electricity is expensive anywhere in the world.
According to him, “Government does not have control over the price of the inputs into the generation of electricity. Electricity is not a cheap commodity. Before now, Federal government was spending N600 billion to subsidise electricity, but now following some reviews we have been able to bring it down to N152 billion per annum.”
He said Nigerians need to pay for electricity as that is the only way to attract investment and ensure improved service.
Earlier in his opening remarks, the Minister of Information and Culture, Alhaji Lai Mohammed said the PMB Scorecard has already featured 10 ministers. These he said include, Works and Housing,
Transportation, Aviation, Interior, Agriculture and Rural Development, Finance, Budget and National Planning, Water Resources, Environment among others.
He disclosed that the initiative was to bring to light the numerous achievements of President Muhammadu Buhari since he assumed office in 2015.
According to him, “We launched the PMB Administration Scorecard Series in October to showcase and document the numerous achievements of the Buhari Administration.”