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El-Rufai appointed head of committee to review ownership of DisCos

El-Rufai appointed head of committee to review ownership of DisCos
November 21
18:31 2019

Nasir el-Rufai, governor of Kaduna state, has been appointed as the head of the ad-hoc committee that will review the ownership of the electricity distribution companies (DisCos).

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The decision was reached on Thursday at the meeting of the national economic council (NEC).

The committee will be reviewing the government’s 40% stake in DisCos.

Emeka Ihedioha, governor of Imo state, announced the committee’s decision after the meeting saying the National Council on Privatisation and Bureau of Public Procurement would serve on the committee.

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Governors representing the six geo-political zones on the Board of the Niger Delta Power Holding Company will serve on the review committee.

The power sector was privatised in 2013 resulting in six generation companies and 11 distribution companies.

At its sitting on Tuesday, the senate had resolved to probe the challenges of electricity supply after a motion moved by Chukwuka Utazi, the senator representing Enugu north.

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Vice President Yemi Osinbajo had initially expressed concerns about the underperformance of DisCos saying there is a need for “a substantial change of strategy”.

The federal government had also said it would conduct a final review of the five-year performance agreement with the DisCos by December 31, 2019.

The review is expected to determine if the electricity companies have achieved the performance targets they signed to during the power privatisation.

The Nigerian electricity distribution sub-sector has been considered the weakest link in the value chain since the privatisation, as it has failed to live up to the performance expectations.

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Editor’s note: This story has been edited to reflect the fact that the government is only reviewing its 40% ownership in the DisCos

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