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Senate Favours Divestment of FG’s 40% Stake in Discos

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Senate Favours Divestment of FG’s 40% Stake in Discos

Senate Favours Divestment of FG’s 40% Stake in Discos
August 13
11:58 2019

Members of the Nigerian Senate have declared their support for the proposal to recapitalise the 11 electricity distribution companies (Discos).

They also advised that the 40 per cent shares held by the federal government in the Discos be divested from and sold to investors with technical competence.

A statement from the Ministry of Power quoted the parliamentarians to have disclosed this, stating that it would be more beneficial to Nigeria and the power sector.

It disclosed that the Senate President, Ahmad Lawan, made this known when he received a management team of the Transmission Company of Nigeria (TCN) which was led to his office by its Managing Director, Mr. Usman Mohammed.

Lawan, during the visit, also stated that it was not in the interest of the government to continually disburse bailout funds to the power Discos without commensurate improvement in electricity supply.

He said experts in the field should be given an opportunity to invest in the sector and assured that the Senate would continue to support the TCN in its execution of the Transmission Rehabilitation and Expansion Programme (TREP) which is planned to rehabilitate, stabilise and provide the necessary flexibility in the country’s transmission grid.

Despite his assurance of support for TCN’s TREP, Lawan, however expressed displeasure with the report on its contracting for a Supervisory Control and Data Acquisition (SCADA) which had reportedly happened three times unsuccessfully in the past.

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