Funding gap in electricity sector now N300bn – Discos
The 11 electricity Distribution companies (Discos) have said the funding gap in the power sector is now over N300 billion. They are therefore imploring the federal government to create mechanisms to drive further investments in the sector.
Briefing newsmen in Abuja yesterday, spokesman of the Association of Nigerian Electricity Distributors (ANED), Barrister Sunday Oduntan, said a fair Multi Year Tariff Order (MYTO) was meant to cushion the impact but has not been cost reflective until the recent one signed in December 2015.
Mr. Oduntan said the MYTO 2.1 was then suspended till February 2016 noting that the privatised companies bore the revenue gap of January when the MYTO was not enforced.
The spokesman also urged the federal government to strengthen transmission services by doing a proper concession on managing and investing in the Transmission Company of Nigeria (TCN).
He said the Discos could distribute over 10,000mw but that the transmission infrastructures were inadequate, citing instances of poor allocation to the Kano Disco.
IMF Managing Director Christine Lagarde