Nigerian govt hints at handing stake in 11 DisCos to state governments

The Federal Government of Nigeria has dropped a hint that it is contemplating handing over its 40% stakes in the 11 Distribution Companies (DisCos) to state governments.

This is in a move to address the persistent power shortages dogging the country.

This hint was dropped in a tweet by the Minister of Power Adebayo Adelabu on Friday.

He also hinted that in exchange for handing over FG’s 40% stake to states, the latter will swap their share of Niger Delta Power Holding Company Limited (NDPHC) to FG.

“Yesterday, I met with Abia State Governor, Dr. Alex Otti and shared our short, medium, and long-term strategies. We’re committed to collaborating closely with state ministries of power/energy to tackle challenges in the distribution segment, considering its retail nature.

READ ALSO:Nigerians thrown into darkness over inability to load electricity tokens, DisCos keep mum

“As Minister of Power, I stress the crucial role of state governments in transforming the power sector. State involvement is essential for improving infrastructure, reducing metering gaps, enforcing bill collection, rural electrification, tackling power theft, and securing the right-of-way for transmission lines.

“To enhance state involvement, we’re exploring the idea of unbundling regional Discos into different states for more localized oversight. We’re also looking into financial collaboration between federal and state governments, potentially involving a swap of stakes in DISCOs with state stakes in the Niger Delta Power Holding Company.

“Our vision includes active collaboration in rural electrification. I encourage states to establish rural electrification boards in coordination with our Rural Electrification Agency. State support in providing distribution transformers and replacing weak power lines is crucial for maintaining reliable power supplies” he tweeted.

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