• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News

Tariffs may rise up, as FG prepares to invest $4.7 billion in power sector

Bamidele Samuel Adesoji by Bamidele Samuel Adesoji
June 10, 2019
in Business News, Politics
Tariffs may jack up, as FG sets to invest $4.7 billion in Power sector
Share on FacebookShare on TwitterShare on Linkedin

The Federal Government (FG) of Nigeria in partnership with some private investors are set to jointly raise $4.7 billion to recapitalise the electricity distribution companies (DisCos) as well as upgrade power distribution equipment in the country.

The Managing Director of the Transmission Company of Nigeria (TCN), Dr. Usman Gur Mohammed, disclosed this on Monday, in Abuja. According to Mohammed, the Federal Government is ready to inject $1.7 billion into the DisCos, while the private investors will pay up the balance that is proportional to their 60 percent equity in the companies.

“What we are saying is that to correct this thing, we have to recapitalize the DisCos. The recapitalization requires $4.7 billion, which means they have to bring the balance ($3 billion). What we are saying is that the government cannot be passive anymore… Government ownership should be represented by four directors just like proportional to the investment.

RelatedStories

Discos

DisCos overall billing efficiency falls to 81% in Q1 2025 – NERC 

July 4, 2025
Why Nigeria May Never Enjoy 24/7 Power in Our Lifetime – Odion Omonfoman on Talknomics

Why Nigeria May Never Enjoy 24/7 Power in Our Lifetime – Odion Omonfoman on Talknomics

June 27, 2025

“Government should bring its own 40 percent capital. We have simulated the grid to examine the investment requirement by the DisCos. And we have come to $4.7 billion. Government is going to bring its 40 percent of $4.7 billion which is about $1.7billion.”

More Details: After the privatisation of the 11 Discos of the Nigeria Electricity Supply Industry (NESI) in 2013, the Federal Government retained 40 percent of the equity in the DisCos and divested 60 percent to private investors.

As a result, the power sector recapitalisation framework requires each of the DisCos to raise $500 million. The Nigerian Electricity Regulatory Commission (NERC) on the other hand is expected to make a declaration that all the procurement processes for the equipment shall be competitive.

Speaking further about the plan to recapitalise the power sector, Mohammed disclosed that the Federal Government has concluded plans on the investment portfolio to rescue the ailing power sector.

“This money can be raised. The government was about to collect $1 billion from the Word Bank for DisCos to finance the capitalization of the DisCos. AfD and others are talking about another $1billion for distribution expansion.

“NERC should do a regulation consistent with the declaration of ECOWAS directive that all procurement of DisCos and transmission should be done competitively so that this money that will come in, and it will not be squandered by people giving contracts to their cousins and wives.”

Tariffs may increase: In the meantime, Nigerians should brace up as electricity tariffs may skyrocket following the recapitalization process. According to the TCN boss, the private sector investors would not raise loans from commercial banks. As a result, they would need to earn their returns on investment by hiking tariffs.

“Private investors would not raise their loans from commercial banks, this money has a repayment period of about 20 years and a moratorium period of about five years. So, they (private investors) should bring the same type of money.”

“Tariff may go up as a result of the fact that there is going to be repayment of those capital and also payment of interest.”


Follow us for Breaking News and Market Intelligence.
Tags: DISCOSFG invest in power sectorNigeria's power sectorPrivatisation of Nigeria's power sectorTransmission Company of Nigeria (TCN)
Bamidele Samuel Adesoji

Bamidele Samuel Adesoji

Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

Related Posts

Discos
Energy

DisCos overall billing efficiency falls to 81% in Q1 2025 – NERC 

July 4, 2025
Why Nigeria May Never Enjoy 24/7 Power in Our Lifetime – Odion Omonfoman on Talknomics
Digital Media

Why Nigeria May Never Enjoy 24/7 Power in Our Lifetime – Odion Omonfoman on Talknomics

June 27, 2025
Nigeria to fix irregular power supply in 40 years- Senate, Customers to pay for metering through cost of tariff- NERC
Energy

Band A customers don’t get up to 10 hours of power daily, it’s a scam – Analyst alleges 

April 22, 2025
Discos
Energy

Experts, consumers differ on NERC’s N628 million fine on DisCos over estimated billing breach 

April 18, 2025
DisCos
Energy

DisCos’ revenue rises to N509.84 billion in Q4 2024 as collection efficiency improves – NERC 

March 25, 2025
IKEDC: “Air Force can settle its N4.34 billion debt but chooses not to” – Electricity distributors say 
Energy

IKEDC: “Air Force can settle its N4.34 billion debt but chooses not to” – Electricity distributors say 

March 7, 2025
Next Post
Lafarge Africa sell Lafarge South Africa Holdings, Lafarge Holcim acquires Lafarge South Africa Holdings, Lafarge financial statement, Lafarge Africa Plc rights issue

Again, Lafarge Plc delays release of FY 2018 and Q1 2019 financial results

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • Ex-world’s richest woman Francoise Bettencourt Meyers is $18 billion richer in 2025
  • NDLEA intercepts $17.7 million in counterfeit travelers’ cheques, arrests suspects 
  • Weekly Market Wrap: Insurance, Consumer goods sectors shine as All-Share Index gains 0.83% 

Follow us on social media:

Recent News

Francoise Bettencourt Meyers

Ex-world’s richest woman Francoise Bettencourt Meyers is $18 billion richer in 2025

July 6, 2025
NDLEA: 13.6% of Lagos secondary students have tried drugs, 6.9% are active users  

NDLEA intercepts $17.7 million in counterfeit travelers’ cheques, arrests suspects 

July 6, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics