Why Electricity Distribution Can’t Improve — FG Reveals

Electricity Tariff Hike

The Federal Government has said electricity distribution in the country cannot improve because most of the Electricity Distribution Companies (DisCos) in Nigeria are technically insolvent.

Chairman of the Nigerian Electricity Regulatory Commission (NERC), Engr. Sanusi Garba, said this on Thursday while speaking at the 8th Africa Energy Market Place 2024 in Abuja.

Garba said the electrcity companies are unable to pay for invoices sent to them from the electricity market and invest in network expansion projects.

The NERC boss added that the poor financial state of the DisCos makes it difficult for them to raise the needed capital to invest.

He said: “Today when you look at distribution companies, they are clearly and technically insolvent, and you also want them to raise capital in terms of debt or equity. It’s a herculean task.

“I also want to mention that implementing the power sector reform requires powerful political will to implement decisions that impact the wider public.

On his part, the Minister of Power, Adebayo Adelabu, said the government is working to get the DisCos solvent and effective by unbundling their operations along state boundaries.

Adelabu insisted that the areas covered by the current DisCos are too large for them to deliver effective services to consumers.