The distribution companies in the power sector, Discos, have mapped out plans to invest N935bn in their networks within five years as calls for their recapitalisation heightens.
The move came after some stakeholders in other arms of the power business called for the recapitalisation of the Discos.
Nigerian Electricity Regulatory Commission (NERC) disclosed that on the Performance Improvement Plans of the Discos showed that the power firms had mapped out over N900bn to be invested in their networks between 2019 and 2024.
In their different Performance Improvement Plans submitted to the NERC, the Discos revealed how they planned to upgrade their distribution networks between 2019 and 2024.
According to them, their investments would be on facilities such as meters, transformers and power distribution lines. It also showed that Abuja, Ikeja, Eko and Enugu Discos planned to invest N56 billion, N105 billion, N78.6billion and N118billion, respectively over the five-year period.
While Benin will invest N287 billion, Kano, Kaduna and Ibadan Discos will invest N49.8bn, N112bn and N83bn, respectively during the same period, according to the documents.
The power firms stated that with such investments in their respective networks, their output would be enhanced in order to meet the demands of operators and electricity consumers across the country.
One major operator that had repeatedly called for increased investments in distribution networks is the Transmission Company of Nigeria.
The TCN had repeatedly called on the Federal Government to mandate the Discos to recapitalise by investing massively in their networks in order to effectively distribute power to consumers.
The Managing Director, TCN, Usman Mohammed, stated in Abuja that the Federal Ministry of Finance was looking into the request for the recapitalisation of the Discos.
He stated, “We have written our position to government on the issue of recapitalisation of the Discos and the Ministry of Finance has been asked to look into it. This is a fact. The good news is that the government at the highest level has agreed with us on the issue of recapitalization.”
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Mohammed insisted that the Discos had to recapitalise, either by getting more investors to invest in them or by sourcing for funds from multilateral donors.
He added that the Discos had to expand their networks so that power users would benefit from the expansion work done on the country’s electricity grid by the TCN.