• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Monday, September 1, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

DisCos Decry Takeover Of 5 Firms, Despite Federal Govt’s Failed N100bn Subsidy, Other Promises

by Nse Anthony - Uko
3 years ago
in Business, News
DisCos
Share on WhatsAppShare on FacebookShare on XTelegram

Electricity distribution companies (DisCos) under the aegis of Association of Nigerian Electricity Distributors (ANED) has kicked against the recent “restructuring” of the five DisCos despite the federal government’s failure to release the promised N100 billion subsidy.

Recall that the Bureau of Public Enterprises (BPE) and the Nigerian Electricity Regulatory Commission (NERC) on July 5 announced the restructuring of five DisCos.

Advertisement

 

Executive Director Research and Advocacy, ANED, Sunday Oduntan, said the association views the restructuring to be inconsistent with all the guidelines and processes necessary to comply with the framework of privatization agreements and the rule of law,

 

He said, “we believe that it is reasonable to conclude that the resultant outcome has been an expropriation or backdoor renationalization of the DisCos by the Federal Government of Nigeria”.
He stated that the basis of privatization was fundamentally flawed from the beginning, due to conditions that were not met by the federal government, while expecting the DisCos to meet their performance obligations.
“Not only were the investors short-changed because of insufficient and unreliable data that was provided by BPE to them during the privatization process, but the government also committed to and failed to deliver on the following -DisCos’ debt-free financial books; payment of Ministries, Department and Agencies (MDA) electricity debts; N100 billion subsidy; implementation of a cost reflective electricity tariff; and Private management of the Transmission Company of Nigeria (TCN),
The association maintained that the unfulfilled condition of implementing of a cost reflective electricity tariff led to accrued significant debt and liabilities on the DisCos’ financial books, as they continued to sell electricity below the cost price while TCN remaining a government-owned and operated entity is a major challenge to attracting the private investment that is critical to addressing the transmission bottleneck that is currently belittling the Nigerian Electricity Supply Industry [NESI] value chain.
“These commitments have remained largely unmet over the post-privatisation period and have belatedly been partially addressed – too late to rectify current performance challenges.”
“While the DisCos are not exonerated from responsibility for performance failures, it would be unrealistic to reach related conclusions without taking into consideration the factors that have been listed previously, as well as the FGN’s contributions to these challenges.
“Furthermore, there is an established process by which a change of a corporate entity’s Board of Directors and management occurs. As such, it is with much surprise that the DisCo investors awoke to the July 5th, 2022, renationalisation or expropriation of the five DisCos.
“More so, given that due process was not followed and that the FGN, as a 40 per cent minority shareholder, is represented by the Director General of BPE on the Board of each of the DisCos and is party to all decisions concerning the operations of the DisCos.
“What we have in NESI is a misalignment of risk, technical and commercial factors, with the DisCo investors bearing the brunt of the misalignment,” the said.
The DisCos said unless there is a correction of this misalignment to establish a balance that provides a pathway to sustainable commercial operations, from gas production to retail electricity delivery, the power sector will never attain the level of efficiency that is necessary to provide Nigerians with the significantly improved power situation that is urgently required.
Also, expropriation or renationalisation, by itself, of the DisCos will not change the current bleak situation or outlook of the NESI.

RELATED

How Consultants Create Hostile Learning Environment For Resident Doctors

Resident Doctors Threaten Nationwide Strike, Issue 10-day Ultimatum

3 minutes ago
JUST-IN: AGF Orders Transfer Of #EndBadGovernance Protesters’ Case File To His Office

Nigeria Hails Conviction Of Simon Ekpa By Finnish Court

13 minutes ago

Join Our WhatsApp Channel



SendShare10201Tweet6376Share
ADVERTISEMENT
Previous Post

FBN Holdings Grows Profit By 48% As Assets Rise To N9.5trn

Next Post

Nigeria Loses N4.3bn Annually To Lack Of 24-hour Operation At Airports

Nse Anthony - Uko

Nse Anthony - Uko

You May Like

How Consultants Create Hostile Learning Environment For Resident Doctors
News

Resident Doctors Threaten Nationwide Strike, Issue 10-day Ultimatum

2025/09/01
JUST-IN: AGF Orders Transfer Of #EndBadGovernance Protesters’ Case File To His Office
News

Nigeria Hails Conviction Of Simon Ekpa By Finnish Court

2025/09/01
Police Arrest Female Students Stripping Girl Naked In Viral Video
News

Police Arrest Female Students Stripping Girl Naked In Viral Video

2025/09/01
Police Deny Purported Killing Of Officers
News

Police Arrest 2 Suspects Over Theft Of Tricycle In Borno

2025/09/01
News

Tinubu Mourns FCT Head Of Service Adayilo

2025/09/01
Flood: Kano Assembly Urges FG, Hadejia River Basin To Contain Tiga Dam
News

Kano Assembly Passes N215.3bn Supplementary Budget

2025/09/01
Leadership Conference advertisement

LATEST

Resident Doctors Threaten Nationwide Strike, Issue 10-day Ultimatum

Nigeria Hails Conviction Of Simon Ekpa By Finnish Court

Police Arrest Female Students Stripping Girl Naked In Viral Video

Police Arrest 2 Suspects Over Theft Of Tricycle In Borno

Victor Boniface Completes Werder Bremen Loan Move

Super Eagles Winger Chukwueze Seals Transfer Deal With Fulham

Tinubu Mourns FCT Head Of Service Adayilo

Kano Assembly Passes N215.3bn Supplementary Budget

Rivers: Ibas Swears In 23 Newly Elected LG Chairmen

‘Be Warned, Don’t Destabilise Kaduna’, State Government Warns El-Rufai

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.