The real reason Nigeria can’t get steady Power — NERC chairman

The Federal Government has acknowledged that improvements in electricity distribution in Nigeria are hindered by the technical insolvency of most Electricity Distribution Companies (DisCos).

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

Garba highlighted the severe financial challenges faced by the DisCos, noting their inability to pay for invoices from the electricity market or invest in necessary network expansion projects. This financial instability makes it difficult for the companies to secure the capital required for substantial investments.

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

He also emphasized the need for strong political will to implement power sector reforms, which are crucial for making impactful decisions that affect the wider public.

Adding to the discussion, the Minister of Power, Adebayo Adelabu, outlined the government’s efforts to address the insolvency issue. He mentioned plans to restructure the operations of the DisCos by unbundling them along state boundaries to enhance their solvency and effectiveness.