The Federal Government has issued licenses to 17 Independent Electricity Distribution Networks operators.
This was contained in the 2022 Market Competition Report released by the Nigeria Electricity Regulatory Commission (NERC).
Details of the report showed that out of the 17, 10 are currently operational.
The government revealed this while providing a breakdown of the country’s power distribution segment. The NERC said that all the 11 successor Discos (distribution companies) have been privatised, with ownership and management of the Discos transferred to private investors.
It further said additional private distribution company has been licensed in a specified franchised area, adding that the market competition report was prepared in compliance with Section 24(2) of the Electric Power Sector Reform Act 2004, which mandates the commission to prepare an annual report for the minister as to the potential for competition in the Nigerian Electricity Supply Industry.
“This report provides a review of the level of competition in the NESI and assesses the progress for a transition to a more competitive market. The report further provides recommendations for transition to a more competitive market pursuant to Section 26 of ESPRA.
“The report is directed at a wide spectrum of readers including government officials and institutions, private sector, energy economists, engineers, financial and market analysts, potential investors as well as general readers,” the commission stated.