The Federal Government has resolved to sell off Kaduna, Abuja, Kano, Benin and Ibadan electricity distribution companies (DisCos) in the next three months.
The five DisCos are under the management of banks and Asset Management Corporation of Nigeria (AMCON).
The companies would be sold to technical power operators, Minister of Power Adebayo Adelabu has revealed during a meeting with the members of the senate committee on power in his office in Abuja on Monday.
The five DisCos include Abuja Electricity Distribution Company (AEDC), currently under the management of the United Bank for Africa (UBA); Benin Electricity Distribution Company, Kaduna Electricity Distribution Company, and Kano Electricity Distribution Company, managed by Fidelity Bank, while Ibadan Electricity Distribution Company is under AMCON management.
The distribution companies are under the management of the banks and AMCON due to their debt burden.
The minister said the tough decision on the DisCos has become necessary because the entire Nigerian Electricity Supply Industry (NESI) fails when they refuse to perform.
Mr Adebayo said the ministry will prevail on the Nigerian Electricity Regulatory Commission (NERC) to revoke underperforming licenses and also change the management board of the DisCos if it becomes the solution.
The minister said, “And all the DisCos that are still under AMCON and banks, within the next three months, must be sold to technical power operators with good reputations in utility management.
“We can no longer afford AMCON to run our DisCos. We can no longer afford the banks to run our DisCos. This is a technical industry and it must be run by technical experts.”
