FG Vows To Resell DisCos With Banks, AMCON Within Three Months

The federal government has announced plans to sell off the five electricity Distribution Companies (DisCos) currently managed by banks and Asset Management Company (AMCON) to reputable technical power operators within the next three months.

It’s worth noting that the Abuja Electricity Distribution Company (AEDC) is presently managed by the United Bank of Africa (UBA). 

Fidelity Bank manages the Benin, Kaduna, and Kano Electricity Distribution companies, whereas AMCON manages the Ibadan Electricity Distribution Company.

They all ended up under the new management arrangement because they couldn’t repay their loans.

During an oversight visit to the Ministry in Abuja, the Minister of Power, Adebayo Adelabu, informed the Senate Committee on Power that energy distribution assets are highly technical and should be managed by technical experts.

He informed the committee that making tough decisions regarding the DisCos has become imperative because the entire Nigerian Electricity Supply Industry (NESI) suffers when they fail to fulfil their obligations.

The minister mentioned that the ministry would urge the Nigerian Electricity Regulatory Commission (NERC) to revoke licenses of underperforming entities and potentially alter the management boards of the DisCos if deemed necessary.

Adelabu said, “Lastly, 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.

“The entire ministry is not performing. We have put pressure on NERC, which is their regulator to make sure they raise the bar on regulation activities.

“If they have to withdraw licenses for non-performance, why not? If they have to change the board of management, why not?

“And all the DisCos that are still under AMCON and Banks, within the next three months, they must be sold to technical power operators with good reputations in utility management.

“We can no longer afford AMCON to run our DisCos. We can no longer afford the banks to run our DisCos. This is a technical industry, and it must be run by technical experts.“

The minister emphasized the need to restructure the DisCos for improved efficiency, highlighting that the Ibadan DisCo is huge for a single company to manage effectively.

In response to the decision to resell the DisCos, a committee member, Senator Isah Jibrin, accused some operators of stripping the assets of the DisCos they acquired in 2013.

He emphasized that the operators of any DisCo whose license is revoked must be compelled to restore the assets to their original state before the handover.