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Poor Power Supply: FG To Unbundle 11 Discos, Orders Sale Of Four

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Power distribution companies in Nigeria are currently being unbundled along state lines due to their large sizes which often result in inefficiency and ineffectiveness, the Federal Government declared on Monday.

It stated that the privatisation of the firms would not be reversed, but stressed that the Discos would be broken into more efficient structures along state lines so as to be able to deliver on their mandates.

This came as the Federal Government also ordered the sale of Discos that have been taken over by banks and the Assets Management Corporation from its original investors/owners.

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Currently, four Discos are under the management of banks and AMCON.

Abuja Electricity Distribution Company is under the management of the United Bank of Africa (UBA), while Fidelity Bank manages Benin Electricity Distribution Company, Kaduna Electricity Distribution Company, and Kano Electricity Distribution Company.

The Ibadan Electricity Distribution Company is under the AMCON management.

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The four Discos are under these new managements due to their inability to repay their loans to the financial institutions.

The government stated that those who acquired the Discos when the firms were officially privatised in November 2013, lacked the required expertise and financial capacity to run the companies.

This came as the Senate Committee on Power lambasted the Discos for being so inefficient since they took over the privatised assets over 10 years ago, and called for the overhaul of the power firms.

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In his address, while playing host to the Senate Committee on Power, led by their Chairman, Senator Eyinnaya Abaribe, the Minister of Power, Adebayo Adelabu, stated that the Federal Government had commenced the restructuring of Nigeria’s 11 power distribution companies.

He also revealed that over 100 projects of the Transmission Company of Nigeria have not been completed since 2001, a period of about 23 years.

READ ALSO: National Grid Collapses Again, Throws Nigerians Into Blackout

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Adelabu said, “We are unbundling the Discos along state lines. Some of the Discos are too big for efficiency. They are too big for effectiveness. Ibadan Disco covers seven states. It is practically impossible for them to be efficient.

“So we are rearranging and restructuring the Discos along state lines so that each state government will know the responsible Disco for their states. Also, the federal and state governments should start exercising their rights in the operation and management of the Discos because we still own 40 per cent in the firms.

“But we have left it for the private sector operators for too long and they have messed it up. So the government must come back to take over its own right in the Discos. We are also planning to franchise the unserved communities under the Discos.”

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The minister went ahead to state that “we will start seeing regulations about franchising. The fact you are Eko Disco doesn’t mean that you cannot have smaller Discos that are ready to invest in your unserved communities. So we are looking at franchising.”

Adelabu further revealed that the Oyo State Government had written to the Federal Government stating that it wants to exercise its rights in Ibadan Disco.

He said the Nigerian Electricity Regulatory Commission has been made to realise that it must sanction Discos that fail to perform, as the licences of some of the power firms might be withdrawn for non-performance.

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“We are transforming the Discos and very soon you’ll see that a lot of tough decisions will be taken against these Discos because they are the last mile in the sector. If they don’t perform then the entire sector is not performing.

“So we have put pressure on NERC to make sure that it raises the bar on the activities of the Discos. If it has to withdraw licences for non-performance, why not? If it has to change the boards and managements, why not?

“And all the Discos that are still under AMCON (Asset Management Corporation of Nigeria) and some lenders (banks), within the next three months they must be sold to a technical power operator with a good reputation in utility management.

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“We can no longer afford AMCON to run our Discos. We can no longer afford the banks to run our Discos. This is a technical industry and it must be run by technical experts,” the power minister stated.

Also commenting on the non-performance of Discos, a member of the committee, Senator Danjuma Goje said, “The Discos have not added anything significant to the power sector, but are just going about collecting money.

READ ALSO:Blackout As National Grid Collapses Again

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“The Discos are complete failures and should be overhauled. They have failed to live up to expectations and we have so many complaints about their poor performances.”

The Senate committee also authorised an investigative hearing on the electricity tariff hike and stated that this would be held on April 29, 2024, at the Senate.

Privatisation problems

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The power minister told his guests that those who acquired the Discos when they were privatised, lacked the required expertise and financial capacity.

Adelabu said, “Our problem started from the privatisation era. Not that the privatisation has a problem in itself, but its implementation and execution have robbed the process of its laudable objectives.

“We believe that people who bought the power companies do not have the required expertise to run the utility firms. Secondly, they were not buoyant enough in terms of financial buoyancy to pay for the power plants.

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“All of them used bank loans to pay for the assets. And we all know that the power business is a long-term business. It is not something you recoup your capital and make profit in a short time. So they were all under pressure to repay the bank loans that they used to acquire the power companies.

“This is why today a number of them have been taken over by their lenders, either AMCON or the banks, both local and international banks. They also promised to invest and enhance the distribution network, but they did not do this.”

The minister stated that the investors had promised to reduce the losses in the Discos, but stressed that up till now the losses had remained at about 40 per cent across the power value chain.

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So the Discos are not investing as expected,” Adelabu stated.

100 uncompleted projects

The minister told the lawmakers that over 100 power transmission projects have not been completed since 2001.

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“Since 2001 till date we have over 100 uncompleted projects of the Transmission Company of Nigeria. So when we say the government has spent so much in the sector, it is true. But all the spendings have not translated to good impact on power users.

READ ALSO: Nationwide Blackout Looms As NUEE Threatens To Shut Down National Grid

“This is because majority of these projects have not been completed, though some of them are 80 or 90 per cent completed. We have over 65 projects on power substations that are still ongoing since 2001, which is 23 years ago.

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“We have about 62 lines projects across the country that were started and have not been completed. And these are being affected by exchange rate calculations, inflation, variations, etc. One thing about power projects is that if they are not completed 100 per cent, you cannot energize them,” Adelabu stated.

He said all the investments are just there lying in waste, “but we are saying that this year we must ensure that a significant number of these projects are completed so that Nigerians can enjoy the investments in the transmission company.”

On the metering gap in the power sector, the minister stated that a company received $200m in 2003 to provide three million meters but failed to do so.

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“In 2003, the metering gap was less than four million meters and the Federal Government gave out $200m to a particular company to acquire three million smart meters for the industry. It was a revolving loan.

“But it is sad to let you know that this is 21 years after, no single meter was acquired by this company and the $200m which was N32bn at the time, nothing was got from the money until Mr President just gave us the approval to terminate this loan.

“He also asked us to implement the metering of the Nigerian Army formations to the tune of N12bn. You can imagine if we had acquire three million meters 21 years ago. Today the metering gap that we have is over eight million out of over 12 million customers of the power sector,” the minister stated.

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Adelabu, however, noted that the Federal Government was working hard to close the metering gap.

“Mr President has come to our aid on this by forming a Presidential Metering Council, which I’m the Chairman, and he has given us a mandate that a minimum of two million meters should acquired and distributed to Nigerians every year.

“This is going to continue till the next four to five years, so that the current eight million metering gap that we have will be closed over the next four to five years.

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“The funding for this project is being sourced. We have been given a seed capital of N75bn and the Nigeria Sovereign Investment Authority is coming to our aid in terms of capital for this,” Aselabu stated.

READ ALSO: Tinubu Unveils African Counter-Terrorism Summit

The minister also stated that the target of the Federal Government is to achieve 6,000MW of power before the end of this year, adding that this has been submitted to the President.

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He called for the payment of the outstanding debts to gas companies and power generation firms.

He said the government is currently talking with two investors that should invest in the construction of 3,000MW of solar-power projects in various states to support the national grid.

The minister pointed out that Nigeria currently has an installed power generation capacity of about 14,000 megawatts.

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He said, “Today we have a total of 13,250MW installed capacity in all the generating units, including hydro plants and thermal plants. If we add the 700MW coming from the recently Zungeru plant we will have close to 14,000MW installed capacity.

“But it is sad to let you know that the highest we have ever generated in this sector is 5,800MW out of an installed capacity of over 13,000MW, which is less than 50 per cent. The infrastructures are there lying fallow without adequate maintenance and the turbines are getting rusty.

“Two things are responsible, which include the inadequate transmission capacity to evacuate this power even when it is generated. The second thing is the inadequate demand coming from the Discos because they are not getting full payments from the consumers when they distribute power to them.”

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Adelabu said the 5,800MW was generated in March 2021, which was over three years ago.

“But we believe that with good investments and demand for power, we can increase power generation to over 8,000MW once there is adequate infrastructure,” he stated.

PUNCH

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OPINION: Time For The Abachas To Rejoice

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By Lasisi Olagunju

General Sani Abacha was a great teacher. He pioneered the doctrine of consensus candidacy in Nigeria. He founded a country of five political parties and when it was time for the parties to pick their candidates for the presidency, all the five reached a consensus that the man fit for the job was Abacha himself. Today, from party primaries to consensus candidacy; from setting the opposition on fire, to everything and every thing, Abacha’s students are showing exceptionally remarkable brilliance.

Anti-Abacha democrats of 28 years ago are orchestrating and celebrating the collapse of opposition parties today. They are rejoicing at the prospect of a one-party, one-candidate presidential election in 2027. Abacha did the same. So, what are we saying? Children who set out to resemble their parents almost always exceed their mark; they recreate the parents in perfect form and format. Abacha was a democrat; his pupils inherited his political estate and have, today, turned it into an academy. Its classes are bursting at the seams with students and scholars. Aristotle and his Lyceum will be green with envy, and very jealous of this busy academy.

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Like it was under Abacha, the opposition suffers from a blaze ignited by the palace. But, and this is where I am going: fires, once started, rarely obey and respect their makers.

My friend, the storyteller, gave me an old folktale of a man who thought the world must revolve around him, alone. One cold night, the man set his neighbours’ huts on fire so he alone would stand as the ‘big man’ of the village. The man watched with satisfaction as the flames rose, dancing dangerously close to the skies. But the wind had a scheme of its own. It hijacked the fire, lifted it, and dropped it squarely on the arsonist’s own thatched roof. By dawn, all huts in the village had become small heaps of ash.

Fire, in all cultures, is a communal danger; whoever releases it cannot control its path. The Fulani warn that he who lights a fire in the savannah must not sleep among dry grass, a wisdom another African people echo by saying that the man who sets a field ablaze should not lie beside raffia in the same field. Yet our rulers strike anti-opposition matches with reckless confidence, believing fire is a loyal servant that burns only the huts of opponents. They forget that power is a strong wind, and wind has no party card and respects none.

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When it is state policy to weaken institutions, criminalise dissent and have rivals crushed with the excuse of order, the blaze spreads quietly, patiently, until it reaches the bed of its maker. Fire does not negotiate; it does not remember or know who started it (iná ò mo eni ó dáa). In politics, as in the grassland, those who weaponise flames rarely die with unburnt roofs over their heads.

MORE FROM THE AUTHOR:OPINION: The Girls Of Chibok, Maga, Papiri And Our Frankenstein

The folktale above is the story of today’s ruling party. People in power think it is wisdom to weaken, scatter, or destroy opposition platforms outright. They have forgotten the ancient lesson of the village: When you burn every hut around you, you leave nothing to break the wind when it blows back. A democratic system that cannibalises opposition always ends up consuming itself. Our First Republic is a golden example to cite here. History is full of parties that dug graves for their rivals and ended up falling inside.

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Literature is rich with warnings about the danger of lighting fires; they more often than not get out of control. In Duro Ladipo’s ‘Oba Koso’, Sango is the lord of fire and ultimately victim of his fire. In Shakespeare’s ‘Macbeth’, we see how a single spark of regicide grows into a blaze of paranoia and bloodshed that ultimately consumes Macbeth himself. In D. O. Fagunwa’s Adiitu Olodumare, we see how Èsù lé̟̟hìn ìbejì is consumed by the fire of his intrigues; Chinua Achebe’s ‘Things Fall Apart’ shows a similar pattern with Macbeth: Okonkwo’s role in Ikemefuna’s death ignites a chain of misfortunes that destroys his honour and his life. In ‘The Crucible’, Arthur Miller’s characters take turns to unleash hysteria through lies, only to be trapped by the inferno they created. Ola Rotimi’s ‘The Gods Are Not to Blame’ and even Mary Shelley’s ‘Frankenstein’ echo the same lesson. Again and again, literature insists that those who start dangerous fires whether of ambition, deceit, violence, or pride, should never expect to sleep safely. Always, the tongue of the flames turns and returns home.

Abacha must be very proud that the democrats who fought and hounded him to death have turned out his faithful students. From NADECO to labour unions and to the media, every snail that smeared Abacha with its slime is today rubbing its mouth on the hallowed hallways of his palace.

Under Abacha, to be in opposition was to toy with trouble. Under this democracy, all opposition parties suffer pains of fracture. Parallel excos here; factional groups there. Opposition figures are in greater trouble. It does not take much discernment before anyone knows that Tiger it is that is behind Oloruntowo’s troubles; Oloruntowo is not at all a bad dog. But how long in comfort can the troubler be?

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In 1996, Professor Jeffrey Herbst of the Woodrow Wilson School, Princeton University, United States, asked: “Is Nigeria a Viable State?” He went on to assert – and predict – that “Nigeria does not work and probably cannot work.” He said the country was failing not from any other cause but “from a particular pattern of politics …that threatens to even further impoverish the population and to cause a catastrophic collapse…” That was Nigeria under Abacha. We struggled to avert that “catastrophic collapse”; with death’s help, we got Abacha off the cockpit, and birthed for ourselves this democracy. Now, we are not even sure of the definitions of ‘state’, ‘viable’ and ‘viability’. What is sure is that the “particular pattern of politics” that caught the attention of the American in 1996, is here in 2025. As it was under Sani Abacha, everyone today sings one song, the same song.

Abacha died in 1998; Abacha is alive in 2025. It is strange that his family members are not celebrating. How can you win a race and shut yourself up? My people say happiness is too sweet to be endured. The default response to joy is celebration but we are not seeing it in the family of the victorious Abacha. Because the man in dark goggles professed this democracy, this democracy and its democrats have apotheosised Abacha; he is their prophet. They take their lessons from his sacred texts; his shrine is their preferred place of worship.

MORE FROM THE AUTHOR:OPINION: Absurd Wars, Absurd Lords

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“As surely as I live, says the Lord, every knee will bow before Me; every tongue will confess to God.” – Romans 14:11. Our political lords copied those words and, in profaned arrogance, read it to Nigeria and its terrorised people. Now, everyone, from governors to the governed, bows; their tongue confesses that the president is king, unqueriable and unquestionable.

When a man is truly blessed, all the world, big and small, will line up to bless him and the work of his hand. Governors of all parties are singing ‘Bola on Your Mandate We Shall Stand.’ In the whole of southern Nigeria, only one or two governors are not singing his anthem. Northern governors sing ‘Asiwaju’ better and with greater gusto than the owners of the word. In their obsessive love for the big man’s power and the largesse it dispenses, they assume that ‘Asiwaju’ is the president’s first name. They say “President Asiwaju.” The last time a leader was this blessed was 1998 – twenty-seven years ago.

Our thirst for disaster is unslaked. All that the man wanted was to be president; he became president and our progressive democrats are making a king out of him. And we watch them and what they do either in sheepish horror, complicit acquiescence or in criminal collusion. We should not blame the leader for seeing in himself Kabiyesi. That is the status we conferred on him. Even the humblest person begins to gallop once put on a horse. True. Humility or simplicity disappears the moment power unlimited is offered.

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The chant of the president’s personal anthem is what Pawley and Müllensiefen call “Singing along.” It is never a stringless act. Worse than Abacha’s Two-Million-Man March, we see two hundred million people, crowds of crowds, move together in one voice, bound by an invisible script and spell. We feel a ‘terrorised’ democracy where citizens learn, through bowing, concurring and context rather than conviction, to sing the song of the kingly emperor. People who are not sure of anything again discover that synchronised voices create safety, and belonging. They proceed to stage it as a ritual for economic and political survival.

The popular Abacha badge decorated the left and right breasts of many fallen angels. Collective chanting signalled loyalty and reduced individual risk. Under this regime of democrats, the badge will soon come, but the chant is louder and wider cast. Unitarised voices have become instruments through which power is normalised, and by which dissent is dissolved.

MORE FROM THE AUTHOR:OPINION: Kukah And A Nation Of Marabouts

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Two years into this democracy in 2001, Nigerian-American professor of African history and global studies, Raphael Chijioke Njoku, warned that “new democracies often revert to dictatorships.” He was a prophet and his scholarship prescient. We are there.

There are sorries to say and apologies to drop. On September 8, 1971, Nigeria killed Ishola Oyenusi and his armed robbery gang members because they stole a few thousands of Nigerian pounds. Why did the past have to shoot them when it knew it would stage greater heists in the future? It is the same with Sani Abacha and his politics. Why did we fight him so viciously if this grim harbour was our destination? I do not have to say it before you know that the spirit of the dead is out celebrating its vindication.

American political scientist, Samuel Huntington, in his ‘The Third Wave’, lists four typologies of authoritarian regimes: one-party, personal, military and racial oligarchy. The last on this list (racial) we may never experience in Nigeria but we’ve seen military rule and its unseemly possibilities. The emergence of the first two (one-party and personal dictatorship) was what we fought and quenched in the struggle with Abacha. Unfortunately, the evil we ran out of town has now walked in to assert its invincibility. What did Abacha’s sons do that today’s children of Eli are not doing ten-fold? Democracy is a scam, or, at best, an ambush.

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Politicians have borrowed God’s language without His temperament. They have restructured the Presidential Villa into Nigeria’s Mount Sinai where commandments descend on tablets of gold bars. The whole country has become an endless Sunday service; the president sits on the altar, ministers and party chieftains swing incense burners, emitting smokes of deceit and self-righteousness; the masses kneel in reverence and awe of power. They look up to their Lord Bishop, the president, as he dispenses sweet holy communion to the converted – and dips the bottom of the stubborn into baptismal hot waters. We were not fair to Sani Abacha.

We cannot eat banana and have swollen cheek. But we can eat banana and have swollen cheeks. What will account for the difference is the sacrifice we offer to the mouth of the world. The words of the world rebuke absolute power. By choking the space for alternative voices, my Fulani friend said the ruling party is setting the whole political village ablaze, including the patch of ground on which its own structure stands. No parties or leaders survive the inferno they unleash on others. The flame of the fire the ruling party ignites and fans today will, inevitably, find its way home tomorrow.

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Ex-Nigerian Amb., Igali, To Deliver Keynote Address As IPF Holds Ijaw Media Conference

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invites general public to grace event

A former Nigerian ambassador to Scandinavian countries, Amb (Dr.) Godknows Igali, is billed to deliver a keynote address at the second edition of the Ijaw Media Conference, scheduled for Wednesday, December 17, 2025, in Warri, Delta State.

In a statement jointly issued by Arex Akemotubo and Tare Magbei, chairman and secretary of the planning committee respectively, said the conference, with the theme: ‘Safeguarding Niger Delta’s Natural Resources for Future Generations,’ speaks to the urgent need for responsible stewardship of the region’s land and waterways.

According to the statement, the conference will feature
Dr Dennis Otuaro, Administrator of the Presidential Amnesty Programme, as the chairman while a former president of the Ijaw Youth Council, Engr Udengs Eradiri, will deliver the lead presentation.

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READ ALSO:Otuaro: IPF Urges Reps To Take Caution Over Arrest Threat

The statement described Otuaro’s chairing the event as a reflection of the conference focus on policy, accountability and sustainable development in the Niger Delta.

According to the statement, both the keynote speaker and the lead presenter are expected to shape discussions on environmental protection, governance and the role of the media.

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According to the statement, the Speaker of the Delta State House of Assembly, Hon. Emomotimi Guwor, is expected to attend as Special Guest of Honour.

The statement further list Pere of Akugbene-Mein Kingdom, HRM Pere Luke Kalanama VIII, first Vice Chairman of the Delta State Traditional Rulers Council, as Royal Father of the Day, while Chief Tunde Smooth, the Bolowei of the Niger Delta, as Father of the Day.

Others include: Mr Lethemsay Braboke Ineibagha, Managing Director of Vettel Mega Services Nigeria Limited; Prof Benjamin Okaba, President of the Ijaw National Congress; Sir Jonathan Lokpobiri, President of the Ijaw Youth Council; Hon. Spencer Okpoye of DESOPADEC; Dr Paul Bebenimibo, Registrar of the Nigerian Maritime University, Okerenkoko; Chief Boro Opudu, Chairman of Delta Waterways and Land Security; and Chief Promise Lawuru, President of the Egbema Brotherhood.

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The organising committee said the conference is expected to bring together journalists, policymakers, community leaders, and researchers to promote informed dialogue and collective action toward protecting the Niger Delta for future generations.

 

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Okpebholo Pledges To Clear Inherited Salary Arrears, Gratuities At AAU

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Edo State Governor, Monday Okpebholo, has assured the management of Ambrose Alli University (AAU), Ekpoma, of his administration’s commitment to addressing accumulated unpaid salaries, gratuities and other critical challenges inherited from past administrations.

In a statement, Chief Press Secretary to the governor, Dr. Patrick Ebojele, said the governor gave the assurance when he received the Vice-Chancellor of the university, Professor (Mrs.) Eunice Eboserehimen Omonzejie, and members of her management team on a courtesy visit to Government House, Benin City.

Okpebholo, who congratulated the Vice-Chancellor and her team on their appointments, noted that their presentation underscored the depth of challenges confronting the institution.

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“From what you have outlined today, it is clear that Ambrose Alli University was on life support. I must commend the progress you have recorded so far since assuming the office,” the governor said.

READ ALSO:JUST IN: Okpehbolo Appoints New VC For AAU

I am impressed by your efforts, and I want to assure you that in any way possible, this administration will support the university to reposition it and restore its lost glory.”

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Addressing the issue of accumulated salary arrears, the governor described the non-payment of staff salaries over several years as unfair and unacceptable.

It is not right for people to work and not be paid. The issue of unpaid salaries, pensions and gratuities running into billions of naira is something I will take as a project,” he said.

“These are issues inherited from the past government, and we will address them.”

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Okpebholo also acknowledged other concerns raised by the university management, including hostel infrastructure, accreditation-related challenges and facilities required for programmes such as Medical Laboratory Science.

READ ALSO:JUST IN: Okpehbolo Recalls Suspended Edo Attorney General

“This year’s budget is already at an advanced stage, but I expect that these critical needs will be properly captured in your budget proposals. Once that is done, we will see how best to move the institution forward,” he added.

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Earlier, the Vice-Chancellor, Professor Omonzejie, explained that the delay in paying a courtesy visit to the governor was due to a recently concluded accreditation exercise and the need to carry out a comprehensive assessment of the state of the university.

She noted that the university she inherited was in a moribund state, plagued by infrastructural decay, unpaid salaries and accreditation challenges, among others.

READ ALSO:Obaseki’s Media Aide Tackles Edo Information Commissioner Over Alleged ₦600bn Debt

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Omonzejie expressed profound appreciation to Governor Okpebholo for what she described as “life-saving interventions” since his assumption of office.

According to her, the governor’s approval of an increased monthly subvention, restoration of affected staff to the payroll, support for graduating backlog medical students, improved security logistics, and the facilitation of road construction through the Niger Delta Development Commission have significantly revived the institution.

She also formally presented pressing needs requiring urgent attention, including accumulated unpaid salaries, pensions, gratuities and union deductions, as well as the construction of lecture theatres and hostels to enhance accreditation and expand student intake, particularly in the College of Medicine.

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