FG Plans Sale of 5 DisCo Companies

The Federal Government has announced its intention to sell off the five electricity distribution companies (DisCos) and has also cancelled a $200 million metering contract awarded earlier in 2021.

Speaking on the matter, the Minister of Power, Adebayo Adelabu identified that the banks and Asset Management Company of Nigeria (AMCON), which have been managing the DisCos due to loan defaults, lacked the necessary technical expertise.

Adelabu disclosed that the sale of the DisCos to reputable technical power operators is expected to be concluded within three months.

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The affected DisCos included the Abuja Electricity Distribution Company (AEDC) managed by the United Bank of Africa (UBA), the Benin Electricity Distribution Company (BEDC), the Kaduna Electricity Distribution Company, and the Kano Electricity Distribution Company managed by Fidelity Bank.

For the Ibadan Electricity Distribution Company (IEDC), it is currently under the management of AMCON.

The electricity blackout situation has persisted in the country, with DisCos attributing it to low grid allocations and gas shortages to generating companies (GenCos).