Breaking: FG
to sell DisCos to new investors- Mohammed
By Emma
Ujah, Abuja Bureau Chief & Emmanuel Elebeke
The federal
government has commenced negotiations with operators of the Electricity
Distribution Companies (DisCos) with a view to ceding some of their shares to
accommodate new investors who would bring in more funds to increase their
service delivery.
The Minister
of State for Budget and National Planning, Mrs. Zainab Mohammed, disclosed this
at the end of the Nigeria Economic Summit 23#, in Abuja, Thursday.
Discos have
been recognised as obstacles to the nation’s quest for efficient electricity
sector.
Her words, “
The Power sector has been privatized and every Nigerian knows that the
privatization has not worked well. Things we sought to achieve in the power
sector have not yet happened. And we have now come to the point where investors
in the power sector must come together and decide to cede some of their
holdings to enable new investors with expertise come in to enable us grow the
power sector at the pace we want. It involves negotiating with existing owners
and also government.
“No new
investor will be interested to come in with the level of tariff obtainable
now. There will be an impact on tariff. Starting point will be Discos.
“The power
sector will be opened up to new investment, it is very clear that no new
investor will be coming without having a satisfaction from the tariff that will
be obtainable in the industry.
“That is a
discussion that must be held. It is very clear to us now that the level of
tariff we have now is not obtainable. It will be a subject of negotiation
between government, the existing investors and new investors as well as
consumers.
“We will try
to attain to optimal level that will make an impact on the tariff. The starting point will be the Discos.”
Details
soon…
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