Business News

Minister of Power orders investigation into five year license extension for Discos

The Minister of Power, Mr. Adebayo Adelabu has ordered an investigation into the five-year extension of license for electricity distribution companies after the elapse of their initial ten-year license from 2013 to 2023.

Mr Adebayo Adelabu disclosed this during a one-day interaction session with journalists in Abuja.

He said,

Speaking further, the minister explained that while the federal government may find it difficult to review the contracts with electricity distribution companies it’s working on creating mini discos for states across the country for proper coverage of consumer needs.

Additionally, he urged state governments to actively engage and cooperate with the Distribution Companies (DISCOs) within their respective states by assuming a more proactive role and investing in the power sector through the DISCOs.

The Minister also emphasized that the Ministry would engage in discussions with the DISCOs to explore the most effective strategies for advancing the sector.

He made it clear that the Nigerian government has no plans to raise electricity tariffs.

He said,

Mr Adelabu further opined that privatization of the power sector was not the way to go rather commercialization would be better since most power is a capital-intensive industry and private actors don’t have the needed resources.