THE hopelessness of Nigeria’s power sector and its negative impact on the economy are being brought home daily. Just how shaky, was repeated by the Managing Director of the Transmission Company of Nigeria, Usman Mohammed, who said the power distribution companies needed up to $4.3 trillion to recapitalise and distribute power effectively.
Mohammed identified the gross inefficiencies in the sector too, saying that while TransyCo had attracted $1.2 billion credit from multilateral agencies and was building infrastructure to raise its wheeling capacity from 8,000MW to 20,000MW by 2021, the DisCos were not investing to improve their capacity to receive and distribute power from the GenCos and the transmission agency.
Not only are they owing, the major shareholders of some have been accused of diverting revenues, credit and state-provided intervention funds, as well as engaging in contract malpractices. Up to N1.5 trillion has been provided, or is being considered by the government through the Central Bank of Nigeria to the sector operators. The N213 billion CBN Power Sector Intervention Fund and the N701 billion CBN Payment Assurance Fund have not been enough to rescue the system.
Government should encourage the dilution of ownership in the DisCos and aggressively seek out and attract the world’s best power sector private firms into the country. To get out of the muddle, the current proprietors of the DisCos, including the government that holds 40 per cent in them, should unload substantial parts of their equities for reputed global operators to take over.
Is only Nigeria every body we identified problem but no solution
Dis Naija govamnt is wicked they don't have any conscience for decades they have kept us under darkness wat is electricity that government can not provide for her citizenry is a shame on them, wat they know is wear white agbada and cum out as saint, no compassion, GOD dey ohhh.
Nothing will be done
That's why I brought an idea but no one wants to listen