DisCos Cheated By N164 Billion – NEC Report

By Chuks Ekpeneru

A report of the ad-hoc Committee of the National Economic Council (NEC) has indicted Distribution Companies (DisCos) of shortchanging Nigerians by N164 billion through under-investment.

The committee was chaired by the Governor of Kaduna State, Nasir el-Rufai to investigate the ownership structure of the DisCos.

While submitting its report to NEC presided over by Vice-President Yemi Osinbajo in Abuja on Thursday, it said the privatised power sector generally “under-performed.

Giving highlights of the report, Governor Abdullahi Sule of Nasarawa State said the short change came from their breaching their Performance Agreement Target between 2015 and 2018.

The companies however raked in N147 billion from investments on their networks by the Niger Delta Power Holding Company and the Rural Electrification, Agency.

For instance, it noted that total indebtedness stood at N230 billion including “N48 billion of MDAs’ indebtedness to DisCos.”

It added that “DisCos indebtedness is driven by collection short fall and low remittance.”

Specifically on the breach of agreement, the report noted, “Between 2015-2018, DisCos under- invested relative to their Performance Agreement Target by N164 billion (67%) and benefited from investments by NDPHC/REA in their networks to the tune N147 billion.

“Board composition across DisCos are disproportionately skewed toward private investors, while states and LGAs have no representation.”

Send Us A Press Statement Advertise With Us Contact Us

 And For More Nigerian News Visit GWG.NG