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From Ndubuisi Orji, Abuja
The House of Representatives Ad-hoc Committee investigating expenditure on the power sector reform has accused distribution companies (DisCos) of shortchanging Nigerians by failing to meet their obligations since the privatisation of the power sector.
The chairman of the panel, Mr Ibrahim Al-Mustapha Aliyu, stated this at an investigative hearing. He said though the privatisation of the power sector was intended to ensure stable power in the country, Nigerians are still grappling with erratic electricity supply, 13 years after.
Mr Aliyu noted that the perception of Nigerians is that DisCos are the major obstacle to the realisation of the objectives of the privatisation of the power sector.
According to him: “Most of the DisCos fell into the hands of those that are not truly investors, that are not actually ready to invest, but take advantage of the sector. You know, nobody will agree with you that after 13 years, you could not show one particular deliberate initiative.
“I have cited an example with Abuja DisCo last time. Abuja DisCo extends up to Kontagora, but their major concentration is in Abuja, because that’s where they can make money. The larger part of Kontagora may be without electricity.
“They don’t bother. And to be honest, they find it not economically wise, as investors, to waste money extending lines, maybe of 300, 200, 250 kilometres to rural areas, to those other areas that they feel they will not be able to recoup their investment.
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“This is not the intention of the privatisation. And this is what is constantly taking us to the major issue of probe, the issue of establishing the effectiveness or otherwise of the privatisation generally. Look at the DisCos on 60% by the investors and 40% by the government.”
The lawmaker added: “But if I ask you, how much have you returned as a dividend of the 40% back to the government? The answer is nil, because you always pose as those that are investing for charity at last.
“So these are the key issues. I have said it before we begin this meeting, maybe at the beginning of this meeting, that, you know, we have already opened talks with these investors, with the co-investors.
“Because we have to talk as Nigerians. We have to look at avenues where we can salvage this situation. The government has demonstrated commitment. If you can get this money across… Now, if I have to go by these loans given to you by CBN, realise that, yes, some have made money, as you have earlier elucidated from his submission.
“These are the critical issues that Nigerians are begging for answers, that Nigerians are asking. Remember, all the interventions were made out of the taxpayers’ money. And the same taxpayers are your major customers, or the major investment.”
