The 11 distribution companies in the country would require a minimum of $43 billion investment in network infrastructure, in order to make sustainable the investment made in transmission infrastructure in the country, Usman Gur Mohammed, the managing director of the Transmission Company of Nigeria (TCN), has said.
Mohammed gave the information during an interactive session with officials of the donor agencies held on Friday in Abuja.
Usman raised concerns at the meeting stating that while the transmission network infrastructure was being expanded through the “Transmission Expansion Programme’ by the TCN, which seeks to expand transmission of power across the country, the Distribution companies were not making commensurate investment that would see to the sustainability of the networks across the country.
“In recapitalising the Discos, we must agree that we have made a mistake; we believe that as a government that we have made a mistake. The government must bring in their own 40% and the owners must bring in their own 60%.This money should come in a form that there would be at least a 20-year repayment period and five years to review the technical and commercial losses,” Usman said.
Usman further called on the Nigerian Electricity Regulatory Commission (NERC) to reset the bookls of the Discos.
“The distribution companies’ books must be re-set, and tariff that must support investment must be enforced to drive efficiency in the sector,” Usman said.
He pointed out further that the TCN was working to reduce government’s contingent liabilities.
“We are utilising the Eligible Customer rules by working with some state governments to transmit power direct to companies like we are doing with Anambra, Akwa Ibom, and several other state governments.”
Alex Okoh, the director-general of Bureau for Public Enterprise urged the Discos and TCN to find a common ground to operate to ensure efficiency in the power sector.
Muhammad Wakil, the Chief Finance Officer and an energy specialist from the World Bank, speakin, urged a coordinated relationship between the Discos and the Transmission Company of Nigeria to drive efficiency in the power sector.
