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From Okwe Obi, Abuja
The Federal Government said it was considering the establishment of smaller electricity Distribution Companies (DisCos) in underserved communities across the country, to boost the nation’s electricity supply.
Minister of Power, Adebayo Adelabu, disclosed at the closing session of the 7th Edition of Nigerian International Energy Summit, yesterday in Abuja.
Adelabu, who described the electricity DisCos as the weakest link in the nation’s power network, said government plans to intervene in terms of provision of certain infrastructures to the underserved areas.
He said: “When it comes to distribution network, we have generous provision in the budget to intervene in the provision of transformers, electric poles for communities in areas that are not so attractive to the Discos, these are the underserved areas.
“Those areas may not be commercially viable for the DisCos, so they have been neglected over time. We will do direct intervention and I’m pledging to do that.
“We are also saying that there will be licencing of smaller DisCos for small communities, where the existing DisCos are not really making impact.
“We may not have to revoke your licence but your catchment areas can be distributed when you are not performing.
“And we have fact to the effect, you just find out that with the licence you are holding, it is just a small community that you are operating after we have distributed the communities where you are not performing to other smaller DisCos.
“So we are in talks to the DisCos to up their game, because whatever we do in generation and transmission, if it does not get to the last mile in connection. Nigerians are not seeing us doing anything.
“The discos are the major touch point for us, and I’m promising that in my time, there is going to be a transformation.”
Also, he stressed need for DisCos to increase investment in the sector noting that the sector requires huge investments for effective service delivery.
Commending the Abia State Government on the project recently implemented with Geometrics Power Limited, the Minister stressed on the need for the state governments to partner with the government to boost electricity supply in the country.
According to him, “We have the enabling Act to do this and I believe that we’ll use Abia state as a point of contact, to appeal to all state governments to start playing their role and fulfil their electoral promises to their people during their campaign that will provide power.
“So they must start working with us, collaborating with us, cooperating with us and partnering with us. I just met with the 36 commissioners two days ago, my office on Wednesday, and I pass this message across to them.
“Gone are the days when you leave everything to government. We must start devolving this power to the States because they are the closest to the people.
“They know where the transformers are weak, they know where the power lines have deteriorated, they know where the poles are falling, they are closer to the people.
“The Electricity Act of 2023 has allowed this, the president, the government has done what they’re supposed to do, they have moved the power sector from the Executive legislative list to the concurrent list so that every level of government can play in it, even the private sector can play in it. So what are we waiting for?
“Adelabu cannot sit in Abuja and know what is happening to transformers in millions of communities outside Abuja and across six states,” he said.
In her remarks, Team Lead-power, Office of the Special Assistant to the President on Energy, Eriye Onagorowa, said that despite all the interventions from the government on subsidies, over 100 million Nigerians still do not have access to consistent and affordable electricity adding that this lack of access directly impacts their ability to achieve meaningful income growth.
“The power between the number of people living in poverty and those without access to electricity in Nigeria is not accidental.
“Clearly the link between electricity consumption and economic development is well established across different countries with different income strata.
“The economic impact of energy poverty on economic development cannot be overstated, clearly businesses that operate in environments like Nigeria continue to struggle with high operational costs and lower productivity, making them less competitive both globally and locally.
“This in turn clearly affects job creation and limits income growth opportunities. And for households, the lack of access to clean and reliable energy sources has profound implications for education and health, which remain important determinants of economic mobility,” she said.
Onagorowa, who represented Olu Verheijen, by the Special Adviser to the President on Energy, said that while achieving household electrification is a vital step that enhances living standards, it merely scratches the surface of the energy sector’s potential to transform society.
For her, real energy access must go beyond household license, because it seeks to enable a diverse array of activities that are fundamental to modern existence and economic progress.
