The federal government is contemplating the unbundling of electricity Distribution Companies (Discos) to limit their franchise areas to states instead of the current regional arrangement, according to the Minister of Power, Mr Adebayo Adelabu. The move aims to address the challenges faced by Discos in effectively managing their unwieldy franchises and improve Nigeria’s power supply situation.
Adelabu shared the government’s short, medium, and long-term strategies with the governor of Abia State, Dr Alex Otti, emphasizing the crucial role of state involvement in transforming the power sector. The minister highlighted areas such as improving infrastructure, reducing metering gaps, enforcing bill collection, rural electrification, and tackling power theft where state collaboration is essential.
To enhance states’ involvement, Adelabu mentioned exploring the idea of unbundling regional Discos into different states for more localized oversight. Financial collaboration between federal and state governments, potentially involving a swap of stakes in Discos with states’ stakes in the Niger Delta Power Holding Company (NDPHC), is also being considered.
Adelabu encouraged states to establish rural electrification boards in coordination with the Rural Electrification Agency (REA) and emphasized the importance of their support in providing distribution transformers and replacing weak power lines for maintaining reliable power supplies.
The minister disclosed that the ministry would host the inaugural ministerial retreat for the power sector from December 12 to 14, providing a platform to extensively discuss strategies for revamping the sector. He invited Governor Otti to the event, recognizing the sector’s significance to economic growth at both national and state levels.
Otti and other dignitaries expressed support for the transformative efforts in the sector, aligning Abia State’s commitment with the federal ministry’s vision for a robust and efficient power sector. The collaboration aims to drive positive change in the Nigerian power landscape, where the majority of the population relies on generators due to insufficient electricity supply.
