Power distribution companies in Nigeria are currently being unbundled along state lines due to their large sizes which often result in inefficiency and ineffectiveness, the Federal Government declared on Monday.
It said that the privatisation of the firms would not be reversed but stressed that the Discos would be broken into more efficient structures along state lines so as to be able to deliver on their mandates.
This came as the Federal Government also ordered the sale of Discos that have been taken over by banks and the Assets Management Corporation from its original investors/owners.
Currently, four Discos are under the management of banks and AMCON.
Abuja Electricity Distribution Company is under the management of the United Bank of Africa (UBA), while Fidelity Bank manages Benin Electricity Distribution Company, Kaduna Electricity Distribution Company, and Kano Electricity Distribution Company.
The Ibadan Electricity Distribution Company is under the AMCON management.
The four Discos are under these new managements due to their inability to repay their loans to the financial institutions.
The government said that those who acquired the Discos when the firms were officially privatised in November 2013, lacked the required expertise and financial capacity to run the companies.
