Tired! DISCOs offer to sell power sector business

The controversy surrounding the power sector in the country on Tuesday took a new dimension as investors in the electricity Distribution Companies (DisCos) threatened to quit business and divest their assets in the sector at discounted rates.

The investors, who made this disclosure, also called on the Minister of Power, Works and Housing, Babatunde Fashola, to urgently convene a meeting with investors in the Discos if he truly wanted the sector to make progress.

They noted that they were willing to resell their assets to the Federal Government or any interested investor.

The DisCos had bought the assets of the defunct Power Holding Company of Nigeria to oversee the distribution of power to consumers in the country, this followed the privatization of the power sector in 2013 with the Federal Government owing some percentage stake in the business.

The taking over of the sector by the private investors seemed not to have positively impacted on the supply of power in the country despite increased tariff being levied on consumers, a development which has left dissatisfied Nigerians complaining without solution.

This, however, led to the disagreement between Fashola and the power firms. The minister berated the firms over the poor performance, noting that their effort was sabotaging the nation’s economy.

Speaking at a press conference in Abuja on Tuesday, the investors in Jos Electricity Distribution Company Plc, Tukur Modibbo, said the DisCos were doing their best and would not hesitate to sell and leave the market if anyone was interested in buying.

“You asked me whether we are willing to quit the business. Now, please listen to me and put it down clearly that we bought our distribution company cash down for $82 million in 2013; we are willing to take $72 million in 24 hours and leave.

“If you have $72 million or Fashola can give us $72 million, we are giving him $10 million discount; if we get that sum, in 24 hours we are out of this business. Please, is there anybody with $72 million here? If there is none, please advertise it for me because I’ve given you the price,” he said.

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Also speaking, the Chief Operating Officer, Ibadan Electricity Distribution Company, John Ayodele, stated that the power companies would quit immediately if they had an opportunity to do so.

He said, “On when we are going to quit the business, the fact is that if you ask all the investors, because I’ve sat with them, if you can refund them their money in five minutes, they will quit in 10 minutes. No investor wants to stay.”

 

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