Investors Showing Interest in Power Distribution Networks —Fashola

PHCN Power Plant
  • Investors Showing Interest in Power Distribution Networks

The Ministry of Power, Works and Housing has received lots of proposals from investors who are interested in providing funds for the expansion of power distribution networks across the country, the Minister of Power, Works and Housing, Babatunde Fashola, has said.

Nigeria’s electricity distribution networks are managed by 11 distribution companies, who on many occasions have complained of paucity of funds required to efficiently run the systems.

However, in a bid to address this, the minister stated that his ministry had received many proposals from investors who were willing to invest in the networks, adding that the FMPWH would start directing the investors to the Discos.

Fashola stated this at the recent 16th power sector monthly meeting with the operators, according to the minutes of the session, which was obtained by our correspondent in Abuja on Wednesday.

The minister, who chaired the meeting, also directed the power distribution companies to provide areas where they would require investments on their networks, so as to forward same to the potential investors.

It was also decided that the Nigerian Electricity Regulatory Commission should develop measures to address issues of power load rejection by the Discos.

The minutes reads in part, “The chairman (Fashola) informed the meeting that the ministry had received a lot of proposals from investors interested in investing in the distribution networks and that the ministry would channel them to the Discos.”

“On some of the decisions reached at the meeting, the operators mandated the NERC to develop a system that would ensure that power rejected by one Disco was made available to another Discos or eligible customers.

“The Discos are to forward areas where they require investment on their networks to NERC, who would verify and escalate same information to the chairman and the Permanent Secretary (Power).”

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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