HomeNewsNigeria tables plans to restructure Discos

Nigeria tables plans to restructure Discos

The Nigerian government in partnership with the World Bank, have launched the Power Sector Recovery Programme (PSRP), which will see the 11 electricity distribution companies (Discos) reformed.

According to a detailed action plan seen by THISDAY, government will first conduct a thorough forensic review of their operations.

The programme made recommendations for the Nigerian Electricity Regulatory Commission (NERC) to engage the Discos on revised business plans, which will be negotiated, finalised and implemented.

It requires the government to “start the process of restructuring Discos that are found to require new capital injections.”

“This would involve NERC, BPE (Bureau of Public Enterprises), the Discos and other relevant parties. This may also involve the takeover of Discos with degraded financial positions,” said the PRSP report.

However, it explained that before the takeover, technical competence reviews including forensic audits of all the Discos and the adequacy of their technical partners, should be undertaken to ensure that they had not failed in their initial agreements with the government after the privatisation exercise. Read more…

The report was released at a workshop last week in Abuja, organised by the Ministry of Power, Works and Housing.

Performance review of Discos

The document also revealed that there was an on-going audit of the performance agreements and all direct agreements that government signed with operators in the sector to ensure that it was in compliance with its obligations.

It explained that there should also be measures to address the operational challenges of the electricity distribution companies, which should include: “Develop case studies to determine the level of load rejections in the network, develop investment plans with clear impact analyses for increase in load across the network and in metering, and ensure regulatory measures are enforced.”


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Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.