Aug 8, 2022

Mawazo Writing Africa

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FG Sends Important Message to Nigerians Over Privatisation of DisCos – Legit.ng

  • Engr Abubakar Aliyu has been notified by the Nigerian Electric Regulatory Commission (“NERC”) and the Bureau of Public Enterprise (“BPE”)
  • The Minister of Energy was briefed on recent events related to corporate governance in Kano, Benin, Kaduna, Ibadan and Port Harcourt DisCos.
  • Meanwhile, electricity consumers were reassured by the recent changes in the leadership of the DisCos

Honourable Minister of Energy, Engr Abubakar Aliyu, has been briefed by the Nigerian Electricity Regulatory Commission (“NERC”) and Bureau of Public Enterprise (“BPE”) on the recent corporate governance events at the power distribution companies of Kano, Benin, Kaduna, Ibadan and Port Harcourt (“DisCos”) which have necessitated a change in their respective board and management.

The announced changes Changes were the result of the receivership of core investors in Kano, Benin, Kaduna and Ibadan DisCos, while actions in Port Harcourt aim to provide much-needed liquidity and prevent insolvency and the risk of collapse of the utility. In implementing the changes, the Ministry will ensure that the changes in corporate governance will not impact the service and stability of the DisCos.

We would like to reiterate that while the Government continues to hold a 40% interest in all DisCos, the utilities are still privately owned “going concern” subject to the provisions of the COMPANIES AND ALLIED MATTERS ACT (CAMA) and are subject to regulation by NERC.

< p class="align-left">The Ministry has received confirmation from the BPE and the Central Bank of Nigeria that the financial institutions in exercising the rights of the lenders to the core investors do not have ownership of the shares and administration of the discos for the Eternity. It is therefore expected that regulators will impose clear deadlines for banks to exit, where appropriate.

We would like to reassure electricity consumers that recent governance changes have been made that DisCos would not adversely affect ongoing reform initiatives including the National Mass Metering Program.

Nigeria now generates 3,900 megawatts of electricity despite heavy investment

Legit.ng reported, that Nigeria is now generating about 3,904 megawatts of electricity for its population of over 200 million.

The Department of Energy said current power generation is a slight improvement, a ministry statement said Tuesday April 12, 2022 to bring it to 86,760.88 MW.

Power production on Tuesday, April 12, 2022 was 3,904 MW before increasing by 1.96 percent compared to 3,982.8 MW , recorded on Monday, April 11, 2022, a Nairametritcs report said.

Source: Legit.ng