TCN asks Nigerian government to liquidate distribution company

The Transmission Company of Nigeria (TCN) has asked the Federal Government to liguidate a power distribution company over its failure to abide by market rules.

The Managing Director of the TCN, Usman Mohammes, while speaking in Abuja, declared that his company had advised the government to liquidate a distribution company.

Although TCN did not reveal the identity of the Disco, the transmission firm had lately taken punitive measures against some discos, suspending and removing them from the national grid.

Mohammed said: “When you cannot abide by the market rules, then you are making things tough for the market, which is why TCN has recommended that one of the Discos should be liquidated as a result of non-performance.”

Mohammed, who lamented that it was sad that some market participants failed to observe the rules of the market, said: “The market has to be driven by rules and regulations. People have to comply with the rules and there has to be sanctions for non-performance and reward for extra-ordinary performance.

Read also: NSE: Equities sustain gains as market adds N134.6bn

“If the market is existing in such a way that anybody who does not perform can get away with it, then there’s no way that market can grow. And our belief is that this our market should grow by all means.”

According to Mohammed, the recent enforcement of market rules by the Market Operator had made it possible for participants who do not know the market rules to start reading the laws that guide operations in the sector.

He said: “There are many people in the market who are supposed to know the rule but they do not understand the rule and this include participants. This is because I’ve seen situations where people write letters that do not make sense.

“When you write a letter, for example, to the Market Operator to say that, ‘I will not be able to pay.’ That has an implication. If you will not be able to pay within the market that means you should be liquidated.”

Mohammed further added that any operator that could not fulfil their obligations within the market should exit.

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