The Federal Government has declared that power distribution businesses in the Nigerian electricity supply industry that do not meet the established requirements would forfeit fifty percent of their operational expenses.
It made the announcement at the First NESI Stakeholders Meeting of 2024 in Lagos through the Nigerian Electricity Regulatory Commission, emphasizing that all future evaluations of the Discos’ individual performances will be done case by case.
Officially, Nigeria has 11 power distribution companies that supply electricity to over 12 million registered power users across the country.
The successor Discos were privatised in November 2013, alongside the power generation companies that produce the electricity supplied to the national grid.
The Transmission Company of Nigeria transmits the power produced by the Gencos to the Discos for onward distribution to users nationwide.
But the sector has been plagued by a series of concerns, top among which is the issue of poor liquidity, and complaints around the inability of Discos to make adequate financial remittances to the industry to guarantee power production.
But in a series of posts on the power sector regulator’s official X handle on Monday, it was stated that the Vice Chairman, NERC, Musiliu Useni, urged Discos to improve their performance or suffer consequences.
