The Federal Government yesterday vowed to sell off the five electricity Distribution Companies (DisCos) as blackout persists
Minister of Power Adebayo Adelabu said banks and the Asset Management Company (AMCON), which have been managing these DisCos, having taken over because of the failure of the management to repay loans, lack the technical capacity.
The sale to reputable technical power operators is expected to be completed within three months, he added.
Those affected are Abuja Electricity Distribution Company (AEDC) under the management of the United Bank of Africa (UBA), Benin Electricity Distribution Company (BEDC), Kaduna Electricity Distribution Company and Kano Electricity Distribution Company manage by Fidelity Bank, Ibadan Electricity Distribution Company (IEDC) is under the AMCON management.
Investors hold 60 per cent of shares in the DisCos. The Federal Government holds the remaining 40 per cent.
Blackout has persisted in most states with DisCos blaming low allocation from the national grid and gas shortages to generating companies (GenCos) as the causes, among others.
Adelabu said: “On distribution, very soon you will see that tough decisions will be taken on the DisCos. They are the last lap of the sector. If they don’t perform, the entire sector is not performing.
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Ghen…ghen
Lobatan
good move