The sports category has moved to a new website.
ADVERTISEMENT

Distribution companies say Military, Ministries owe N93bn’

The association further appealed to all power consumers, including government agencies, to pay their debts promptly.

L-R: Ibadan Disco CEO, Ikeja Disco CEO, Sunday Oduntan, Abuja Disco CEO, members of the Association of the Nigerian Electricity Distributors.

In a recent briefing, the Electricity Distribution Companies (Discos) in Nigeria said that they had recorded revenue shortfall of over N300 billion post privatisation.

Speaking at the briefing with newsmen during the week, Sunday Oduntan, the Executive Director of the association disclosed that Ministries, Department and Agencies are leading the list of debtors in the power sector.

In his words, “This is a cash crisis that threatens to completely undermine the electricity value chain and ability to continue to serve consumers.”

ADVERTISEMENT

Continuing, Oduntan said, ‘MDAs (Ministry, Department and Agency) debts plus interest now stands at N93 billion. The power industry cannot survive with this mounting debt in addition to the dearth of foreign exchange.’

Oduntan also explained that the revenue shortfall had adversely impacted on the ability of the discos to make capital investment in metering, network expansion, equipment rehabilitation and replacement that were critical to service delivery improvement.

Oduntan, who spoke on behalf of the Chief Executive Officers of the Distribution Companies, also disclosed that vandalism of gas pipelines had also led to massive drop in power generation.

‘Shortage of gas leads to low power generation. Low generation and poor transmission facilities lead to low distribution.

ADVERTISEMENT

‘Therefore, the discos should not be blamed for poor power supply because we cannot give what we don’t have’, Oduntan explained.

It was explained that a little over six million customers are on their book, indicating that substantial number of electricity consumers do not pay for it. The distribution companies said that between 40 and 70 percent of consumers in certain areas don’t pay their bills.

“Over the last three and a half years, we have spent lot of money running into billions. When we came on board we met a metre gap of 5m but today we have reduced the metre gap to 2.8m as a total number of 3.2m customers are now metered,” recalling their accomplishments.

The electric distribution companies used the opportunity to absolve themselves of blame in poor power supply to customers saying vandalism of gas pipelines affects generation of electricity which in turn affects transmission before getting to distribution.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Buhari's assets remain the same after 8 years as president

Buhari's assets remain the same after 8 years as president

Attend tribunal to show loyalty to Atiku, PDP - Dino challenges Makinde

Attend tribunal to show loyalty to Atiku, PDP - Dino challenges Makinde

Bala Mohammed emerges Chairman PDP Governors’ Forum

Bala Mohammed emerges Chairman PDP Governors’ Forum

Ondo Assembly elects Oladiji as new Speaker

Ondo Assembly elects Oladiji as new Speaker

Bauchi Gov Mohammed calls for unity among PDP members

Bauchi Gov Mohammed calls for unity among PDP members

FG increases trips on Abuja-Kaduna train route

FG increases trips on Abuja-Kaduna train route

FG moves to ban children below 11 years from writing Common Entrance exams

FG moves to ban children below 11 years from writing Common Entrance exams

Akeredolu is alive - Ondo govt reacts to death rumour

Akeredolu is alive - Ondo govt reacts to death rumour

Tinubu sends condolence message to India over deadly train crash

Tinubu sends condolence message to India over deadly train crash

ADVERTISEMENT
ADVERTISEMENT