The recent developments in Nigeria’s power sector are quite significant. Here’s a summary of the key points:

1. Sale of Electricity Distribution Companies (DisCos):

• The Federal Government is determined to sell off five electricity Distribution Companies (DisCos) due to ongoing blackouts.
• A $200 million non-performing metering contract awarded since 2021 has been revoked.
• The DisCos’ poor performance, attributed to lack of technical expertise, has prompted the decision.
• Reputable technical power operators are expected to take over within three months.
• Abuja Electricity Distribution Company (AEDC), Benin Electricity Distribution Company (BEDC), Kaduna Electricity Distribution Company, and Kano Electricity Distribution Company are among those affected.

1. Efforts to Address Metering Gap:

• A $200 million contract for three million meters, awarded in 2021, has been revoked due to non-delivery.
• The government aims to bridge the eight million metering gap in the next four to five years using a seed capital of N100 billion and N75 billion.
• Funding from the Nigerian Sovereign Investment Authority (NSIA) will support this initiative.

1. Challenges in the Power Sector:

• The power sector faces challenges including incomplete projects, frequent grid collapses, and lack of Supervisory Control and Data Acquisition (SCADA).
• Uncompleted projects, especially those involving SCADA, have been a persistent issue for over 12 years.

1. Response from the Senate Committee on Power:

• Senators expressed concerns over the DisCos’ performance, asset stripping by some operators, and the need for penalties for such actions.
• Suggestions were made to cancel DisCos licenses and potentially hand over management to new operators or even foreigners.
• The Transmission Company of Nigeria (TCN) also seeks funding and support for its projects, including addressing right of way issues.

1. Gas Supply Constraint:

• Gas shortage is a major constraint affecting power generation, exacerbating the power crisis.
• DisCos are reportedly rejecting power allocation despite shortages.

1. Government Debt to Power Sector:

• The Federal Government owes Generation Companies over N1.3 trillion and gas suppliers $1.3 billion.
• The debt has led to gas suppliers refusing to provide more, further impacting power generation.

1. Next Steps:

• The Senate Committee on Power plans to interface with the Federal Government to settle the gas debt.
• The committee will focus on overseeing the completion of World Bank SCADA projects and addressing tariff reviews.

These developments reflect a concerted effort to address longstanding issues in Nigeria’s power sector, aiming to improve efficiency, address infrastructure gaps, and ensure better service delivery.