House of Representatives Ad hoc Committee investigating the implementation of Nigeria’s power sector reforms has accused Electricity Distribution Companies (DISCOs) of sabotaging the nation’s power supply system.
Chairman of the committee Arc Ibrahim Almustapha Aliyu, made the accusation while receiving submission from the Chief regulatory and compliance officer from the Kaduna Electric at the ongoing probe by the committee.
Arch. Ibrahim Almustapha Aliyu, explained that most distribution companies had misled the government at the point of acquisition, presenting impressive business plans but failing to deploy the required resources to upgrade substations, transformers, and distribution networks more than a decade after privatization.
He expressed shock that despite claims by the Transmission Company of Nigeria (TCN) that it can wheel up to 8,000 megawatts, the DISCOS continue to take only about 4,000 megawatts due to limited infrastructure, a problem he said is self-inflicted.
The committee chairman emphasized that Nigerians enjoyed better supply under the defunct NEPA/NITEL-era systems in some areas, and expected significant improvements after private investors took over the assets but the system remain effective.
Chief Regulatory and Compliance Officer of Kaduna Electric, Dr. Mahmood Abubakar said about 60 percent of electricity supplied nationwide is subsidised, a situation said has continued to weaken investors confidence and ability of Distribution Companies (DISCOS) to make necessary capital investments.
He told the committee that only 40 percent of electricity largely consumed by Band A customers, is cost-reflective, while the rest depends heavily on government subsidy that is often delayed or unpaid.
The Kaduna Electricity officer maintained that the current subsidy structure distorts billing, revenue collection, and the ability of DISCOS to expand infrastructure more than a decade after privatisation due to delay in the payment of subsidies by the government.
COV /TSIBIRI
