During the 8th Africa Energy Market Place 2024 in Abuja, the Chairman of the Nigerian Electricity Regulatory Commission (NERC), Engr. Sanusi Garba, acknowledged the dire financial situation facing most electricity Distribution Companies (DisCos) in Nigeria. Garba highlighted that these DisCos are technically insolvent, unable to cover invoices from the electricity market or invest in expanding their networks. He attributed these challenges to past negligence and mismanagement in the sector, stressing the need for strong political will to implement reforms.
Minister of Power, Chief Adebayo Adelabu, outlined the government’s efforts to address the solvency and efficiency issues within the DisCos. Adelabu proposed unbundling their operations along state boundaries, citing that the current coverage areas are too extensive for effective service delivery. Additionally, plans are underway to tackle the substantial debts owed to power generation and gas supply companies, amounting to N1.3 trillion and $1.3 billion respectively.
President Bola Tinubu has approved a strategy to settle these outstanding debts, with a focus on legacy and current debts. The government plans to allocate approximately N130 billion from the gas stabilization fund, facilitated by the Federal Ministry of Finance. These measures aim to stabilize the electricity sector, ensuring sustainable operations and improved services for consumers across Nigeria.
Source: Vanguard