The Nation Newspaper Tinubu: DisCos undercapitalized by N2tr, calls for recapitalization
on Monday, October 30, disclosed that preliminary analysis has indicated that the 11 electricity Distribution Companies are undercapitalized to the tune of N2 trillion.
The president, who was represented by the Office of the Vice President, Special Adviser to the President on Energy and Power Infrastructure, Mr Sodiq Wanka, spoke at the 10th Year anniversary of the Nigerian Electricity Supply Industry Market Participants and Stakeholder Roundtable in Abuja. Insisting that the present tariff is not cost-reflective, the President added that the recent devaluation of naira has worsened the situation.
Tinubu described the 10th anniversary as a perfect opportunity to reflect as a sector and as a government on the progress achieved and the challenges faced since the unbundling and privatization of the integrated national utility. He stated: “Over 90 million Nigerians lack access to electricity. The national grid only serves about 15% of the country’s demand.
The government, he said, is “committed to supporting the metering drive through the World Bank DISREP programme which should add at least 1.25 million metres, while activating the Meter Acquisition Fund to procure another 4 million meters. According to him, this includes industrial and agricultural clusters and strengthened participation in the West African Power Pool in the immediate term.
“We have to accelerate the pace of deployment of renewables and solar in places where it makes sense. There is a real opportunity to accelerate the deployment of inter-connected and isolated mini-grids to deliver power close to the point of use. He sought the prioritization of access to electricity, stressing that his challenge has been universal electricity access to electricity by the end of this decade.
He said that there is a need to realize the complex stakeholder map of the sector and the need for closer inter-ministerial and cross-sector regulatory coordination.Speaking to the Minister of Power, Chief Adebayo Adelabu noted that the renewal of the licenses of the DisCos and GenCos will be a factor in their performance and not automatic.
“Any of the privatized company that has not lived up to expectations will not have the license renewed. We have to consider whether you have complied with the terms and conditions of the licence you were given.
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