Nigeria: Government grants DisCos $200M to improve power supply
(Ecofin Agency) - Nigeria’s Federal Government granted N72 billion (about $199 million) to power distribution companies (DisCos) as to improve energy supply, Mohammed Usman (photo), CEO of Transmission Company of Nigeria (TCN) said.
According to him, TCN’s efficiency is not really perceived because the country's electricity distribution network is weak. “80% of the electricity that is consumed in Benin and Togo is coming from Nigeria. They have stable power and we don’t , it is because our distribution network is weak. The reality is that we need investments in the DisCos. We need to change the distribution network,” Usman said.
He stressed that many transmission and distribution facilities need to be rehabilitated. Let’s note that the electricity distribution companies reported an investment gap of N1,300 billion (nearly $3.6 billion) which is compounded by Nigerian Bulk Electricity Trading (NBET)’s debt. The deficit could worsen if no corrective action is taken.
Currently, Nigeria only distributes about 5,000 MW while demand stands at 12,000 MW. Production capacity is 7,000 MW.
Gwladys Johnson Akinocho