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August 26, 2019
News Politics

Senate seeks divestment of 40% govt’s stake in DisCos

The Senate has urged the Federal Government to divest its 40 per cent stake in electricity distribution companies (DisCos) to foreign investors.

Senate President Ahmed Lawan gave this advice in Abuja when he received the management team of the Transmission Company of Nigeria (TCN) led by Usman Mohammed, its managing director.

In a statement by the TCN, Lawan said experts in the field should be given an opportunity to invest in the sector.

“The 40 per cent holding of the Federal Government as stipulated in the Power Privatisation Act 2005 may also be more beneficial to the nation if it is sold to foreign investors with technical know-how,” the statement read.

He stated that it is not in the interest of the government to keep disbursing bailout funds to DisCos without a commensurate improvement in the power supply.

Read Also: Senate pledges speedy passage of SURCON Act Amendment Bill
Lawan also assured the TCN of Senate’s support for its proposed recapitalisation of DisCos and the transmission rehabilitation and expansion programme (TREP).

He said the programmes should be carried out with a holistic picture of how power supply challenges would be resolved once and for all.

Lawan also expressed displeasure with the report on supervisory control and data acquisition (SCADA) contracts awarded three times in the past without success.

He called for a more stringent process of awarding contracts that would allow only competent firms qualified to execute the project.

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