During a one-day interaction session with journalists in Abuja, Minister Adelabu expressed his concerns about the extension of these licenses and questioned their validity. He revealed that his ministry is in the process of reviewing this extension to ensure that it aligns with the appropriate regulations.
While addressing the issue of contract reviews with electricity distribution companies, the minister acknowledged the challenges associated with such reviews. Instead, he discussed a different approach, which involves creating mini-discos for states across the country. This strategy aims to provide more comprehensive coverage of consumers’ power needs.
Furthermore, Mr. Adelabu urged state governments to play a more active and cooperative role in working with Distribution Companies (DISCOs) within their respective states. This collaboration would include state governments investing in the power sector through the DISCOs to improve the overall power supply situation.
The minister emphasized that the federal government does not have plans to raise electricity tariffs at this time. He cited the fact that it wouldn’t be politically expedient to double existing tariffs, particularly given the dependence on gas power generation. As the cost of gas is linked to the exchange rate, any significant increase in tariffs would have a direct impact on consumers.
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In discussing the broader perspective of the power sector, Mr. Adelabu shared his view on privatization and commercialization. He suggested that rather than privatizing the power sector, a process of commercialization might be more suitable. This approach recognizes that power generation and distribution are capital-intensive industries, and private entities might not possess the necessary resources to address the sector’s challenges.
As the investigation into the extension of electricity distribution licenses unfolds, it remains to be seen how this issue will be resolved and how the power sector in Nigeria will continue to evolve.
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