Electricity Supply: FG To Unbundle DISCOs Swap Stakes with States, Says Adelabu

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The Federal Government (FG) has unfolded plans to unbundle the various regional electricity Distribution Companies (DisCOs) into different states, allowing for more localised oversight.

This was even as it noted that the active participation of governments at the state level will meaningfully transform the sector

The Minister of Power, Adebayo Adelabu made the disclosure when the Governor of Abia state, Mr Alex Otti paid him a courtesy visit at his office in Abuja.

He underscored the role of states in the distribution segment, encompassing infrastructure enhancement, reducing the metering gap, enforcing bill collection, rural electrification, combatting power theft, preventing asset vandalisation, and securing right-of-way for transmission lines.

According to him, addressing challenges in the distribution segment requires unified efforts from sub-national governments due to its retail nature.

To achieve this, he said the ministry plans to collaborate closely with state ministries of power, energy and public utilities.

“Financial collaboration modalities between the federal and state governments will be explored, possibly involving a swap of Federal Government stakes in DISCOs with state stakes in the Niger Delta Power Holding Company (NDPHC),” he said.

Adelabu also highlighted collaboration opportunities in rural electrification, encouraging states to establish active rural electrification boards working in tandem with the Ministry’s Rural Electrification Agency (REA).

“Support from state governments in the provision of distribution transformers and replacement of weak power lines is deemed crucial for achieving reliable and functional power supplies,” he added.

In his response, the Abia State Governor, accompanied by key officials, commended the minister’s well-thought-out strategies and expressed support for his transformative efforts.

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