{"id":6177,"date":"2025-05-20T13:07:17","date_gmt":"2025-05-20T13:07:17","guid":{"rendered":"https:\/\/panoramanews.com.ng\/?p=6177"},"modified":"2025-05-20T13:08:08","modified_gmt":"2025-05-20T13:08:08","slug":"power-minister-carpets-discos-says-performance-dismal-disappointing-frustrating","status":"publish","type":"post","link":"https:\/\/panoramanews.com.ng\/index.php\/2025\/05\/20\/power-minister-carpets-discos-says-performance-dismal-disappointing-frustrating\/","title":{"rendered":"Power minister carpets\u00a0Discos, says performance dismal, disappointing, frustrating\u00a0"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/panoramanews.com.ng\/wp-content\/uploads\/2025\/05\/OIP-3-300x201.webp\" alt=\"\" width=\"300\" height=\"201\" \/><\/p>\n<p>Adelabu<\/p>\n<p>By Publisher<\/p>\n<p>Kindly share:<\/p>\n<p>Power minister carpets\u00a0Discos, says performance dismal, disappointing, frustrating\u00a0Adelabu<\/p>\n<div dir=\"auto\">\n<p>Adebayo Adelabu, the Minister of Power, has slammed slammed the\u00a0electricity distribution companies in the Nigerian Electricity Supply Industry, NESI, describing their performance as poor, disappointing and frustrating the federal government&#8217;s efforts in the sector.<\/p>\n<p>Speaking at a two-day retreat organised by the Senate Committee on Power, Adelabu in a\u00a0statement by Bolaji Tunji,<\/p>\n<\/div>\n<div dir=\"auto\">\n<p>his Special Adviser, Strategic Communication and Media Relations to the Minister,\u00a0 bemoaned the protracted crisis, which has continued to cripple service delivery nationwide\u00a0 despite landmark reforms in the electricity sector.<\/p>\n<p>The minister pointed out obvious gaps in the performance of the distribution companies, as well as aging networks, rampant electricity theft, and poor investment deepening reliance on unsustainable subsidies and leaving millions in darkness.<\/p>\n<p>\u201cWe need to get tough with the DisCos, as they can easily frustrate all the gains we have made. They have disappointed us in performance expectations. Whatever we do in generation does not mean anything to consumers if it is frustrated at the distribution points,\u201d the minister said.<\/p>\n<p>He observed that according to the 2003 restructuring of the power sector, the DisCos were expected to have technical partners, adding that some of them fraudulently presented short-lived spurious partnership with foreign companies, which lasted for about three months, after taking over those companies.<\/p>\n<p>\u201cSo we need utility companies that can invest in the sector to improve infrastructure, improve service,\u201d he said, adding that, \u201ca lot of them went to the banks to take loans to buy the assets after taking over. Instead of providing infrastructure they are taking out the money to pay the loans,\u201d Adelabu added.<\/p>\n<p>He pointed out that tariff adjustments had boosted market liquidity by 70 percent\u2014raising sector revenue from \u20a61 trillion in 2023 to \u20a61.7 trillion in 2024 but lamented that the distribution segment remains the weakest link.<\/p>\n<p>\u201cIn the fourth quarter of 2024, DisCos in the North remitted just \u20a6124.4 billion (30 percent) of their \u20a6408.86 billion invoice, with Abuja DisCo accounting for 85 percent of Northern payments. Southern DisCos fared slightly better, remitting \u20a6254.6 billion (67 percent), though 70 percent of this came from Lagos DisCos alone. These discrepancies are due largely to crumbling infrastructure outside economic hubs, where underinvestment has left networks dilapidated,\u201d he said.<\/p>\n<p>He explained that the metering gap, a key driver of revenue loss and consumer distrust, underscores systemic neglect, adding that the government has launched a \u20a6700 billion Presidential Metering Initiative (PMI) and a World Bank-backed programme targeting 4.3 million meters by 2025, 75,000 units were deployed in April 2024 while additional 200, 000 is expected in May.<\/p>\n<p>\u201cClosing this gap is fundamental to fair billing and financial sustainability,\u201d the minister acknowledged, \u201cbut we are not there yet due to underinvestment and operational inefficiencies.\u201d<\/p>\n<p>According to him the sector also faces a \u20a64 trillion subsidy backlog owed to generation companies, including \u20a61.94 trillion for 2024 alone.<\/p>\n<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">The minister\u00a0 warned that with monthly subsidy shortfalls standing currently at \u20a6200 billion,\u00a0 maintaining current tariffs is \u201cunsustainable,\u201d straining public funds needed for infrastructure upgrades.<\/div>\n<div dir=\"auto\">\u201cTo salvage the sector, we will soon embark on restructuring underperforming DisCos and tightening enforcement of performance benchmarks. However, without urgent capital injection into distribution networks, gains in generation\u2014including a historic 6,003MW output in March 2025\u2014and transmission upgrades, such as 61 new transformers deployed in 2024, will fail to translate to reliable household supply,\u201d he posited.Adelabu also highlighted plans to attract private investment into grid infrastructure and regionalise transmission networks to reduce failure risks.<\/p>\n<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\n<p>He noted that the 70 percent remittance by the two DisCos in Lagos reflects better infrastructure than what obtains in the northern networks.<\/p>\n<p>The minister urged the National Assembly to enact stricter legislation for safeguarding Nigeria\u2019s power infrastructure from acts of vandalism, emphasising the need for robust laws to forestall the destruction of vital assets of the power sector and ensuring the stability of the nation\u2019s electricity supply.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Adelabu By Publisher Kindly share: Power minister carpets\u00a0Discos, says performance dismal, disappointing, frustrating\u00a0Adelabu Adebayo Adelabu, the Minister of Power, has&hellip;<\/p>\n","protected":false},"author":1,"featured_media":6178,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,2],"tags":[344],"class_list":["post-6177","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-economy","category-news","tag-adebisi-adelabu"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - 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