Amid persistent blackouts, the Federal Government has announced plans to divest its ownership of the five electricity Distribution Companies (DisCos).
Minister of Power, Adebayo Adelabu, made the declaration on Monday, April 22, citing the lack of technical capacity among banks and the Asset Management Company (AMCON), which have been managing these DisCos due to their failure to repay loans.
The minister stated that the DisCos will be sold to reputable technical power operators, with the sale expected to be completed within three months.
The affected DisCos include Abuja Electricity Distribution Company (AEDC) under the management of the United Bank of Africa (UBA), Benin Electricity Distribution Company (BEDC), Kaduna Electricity Distribution Company, and Kano Electricity Distribution Company managed by Fidelity Bank. Ibadan Electricity Distribution Company (IEDC) is under AMCON management.
Currently, investors hold 60 percent of shares in the DisCos, while the Federal Government retains the remaining 40 percent.
DisCos have attributed the ongoing blackout to factors such as low allocation from the national grid and gas shortages to generating companies (GenCos).
