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Nigeria initiates move to unbundle DisCos, says finance, gas supply shortages hobbles power sector

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In a bid to shed light on the challenges plaguing the power sector and chart a course for improvement, Minister of Power, Adebayo Adelabu has identified inadequate financing and gas supply as key factors contributing to Nigeria’s energy deficit.

Speaking at a power sector stakeholders’ interactive dialogue in Abuja, Adelabu noted the critical role of the power sector in national development and expressed the government’s commitment, under President Bola Tinubu’s leadership, to address these issues.

Furthermore, the government has initiated the unbundling process for 11 electricity distribution companies (DisCos) aimed at boosting operational efficiency.

Adelabu stated that while the privatization of these firms would remain unchanged, restructuring them along state lines would enhance effectiveness.

Highlighting challenges within the Transmission Company of Nigeria (TCN), Adelabu revealed over 100 incomplete projects since 2001.

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Addressing the inefficiencies of large DisCos, Adelabu outlined plans to restructure them along state lines, allowing for better accountability and service delivery.

Moreover, the government intends to exercise its ownership rights in the DisCos, emphasizing the need for public-private collaboration and the franchising of underserved communities.

The minister, therefore revealed plans by the government to sell DisCos under the management of banks and the Assets Management Corporation of Nigeria (AMCON) due to loan defaults.

Notably, four DisCos, including Abuja Electricity Distribution Company, are currently managed by financial institutions, underscoring the need for sustainable management practices in the power sector.

As the government takes proactive steps to address power sector challenges, collaboration between public and private stakeholders remains crucial for driving sustainable solutions and ensuring reliable electricity supply across Nigeria.

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