FG Reveals Why Electricity Distribution Can’t Improve

FG Reveals Why Electricity Distribution Can’t Improve

Published on May 17, 2024 at 7:33 AM
By Noah Abdulsalam

The Federal Government has attributed the stagnation in electricity distribution in the country to the technical insolvency of most Electricity Distribution Companies (DisCos) in Nigeria……read also  Following FG Directive, Filling Stations Set To Sell Compressed Natural Gas At ₦200, ₦260

Engr. Sanusi Garba, Chairman of the Nigerian Electricity Regulatory Commission (NERC), made this assertion on Thursday during the 8th Africa Energy Market Place 2024 in Abuja. Garba highlighted that the DisCos struggle to settle invoices from the electricity market and lack the capacity to invest in network expansion projects due to their poor financial condition.

“The electricity companies are currently unable to pay for invoices and undertake necessary network expansions,” stated Garba. He emphasized the challenge of raising capital for investment amidst the DisCos’ financial constraints.

Garba underscored the need for robust political will to implement decisions crucial to the power sector reform, acknowledging the significant impact on the broader public.

Minister of Power, Adebayo Adelabu, reiterated the government’s commitment to revitalizing DisCos by reorganizing their operations along state boundaries. Adelabu argued that the current coverage areas of DisCos are too extensive, hindering effective service delivery to consumers.

The government’s acknowledgment of these challenges signals a concerted effort to address systemic issues and pave the way for improved electricity distribution across Nigeria.