Electricity Distribution Companies In Nigeria Need N100 Billion
On November 1, 2013, the federal government handed over power generation and distribution companies to private businesses.
It then promised to support them with 100 billion Naira in subsidy. Till date, the government has not fulfilled that promise.
That is why the Association of Electricity Distribution Companies, ANED is begging the Federal Government to provide the money so that they can resolve the electricity problems facing the country.
ANED's Executive Director, Sunny Oduntan also appealed to the government to inject funds into the transmission section of the power sector.
The association said that the lack of money for the Transmission company of Nigeria is responsible for the huge loss and rejection of electricity load.
According to the statement, government which holds 40% equity in the utilities, had pledged to provide many interventions in the Performance Agreement between DisCos and the Bureau of Public Enterprises (BPE).
"To date, the government has not met the privatisation transaction foundational requirements of providing 100 billion Naira in subsidies, payment of MDA electricity obligations;
"It has not ensured that the DisCos have debt free financial books; and the implementing of a cost reflective tariff," it said.
It added that the funding level of TCN is inadequate, given TCN’s estimate of 7.5 billion dollars for its five-year expansion plan designed to increase its capacity to wheel 10,000 megawatt (mw), from the current 4,500mw.