DisCos Require N2trn To Enhance Power Supply: FG

The Nigerian government has announced that electricity distribution companies (DisCos) in the country are in need of an estimated N2 trillion (approximately $2.5 billion) in capital investment to improve power supply.

This announcement was made by an adviser to President Bola Tinubu on energy, Olu Verheijen, during a recent interview.

The government has stated that new investors are required to revive the industry, which is currently struggling to provide electricity to nearly 200 million people.

The DisCos are currently over-leveraged and under-capitalized, which has limited their capacity to invest in distributing electricity to households.

According to the Vice President, Yemi Osinbajo, Nigeria is only able to supply an average of 3975 megawatts (MW) daily, while poor distribution networks and other factors have constrained another 3153MW.

A study by the French Development Agency (AFD) and the European Union (EU) suggests that Nigeria will need to invest over $100 billion in the next 20 years to provide its citizens with 24 hours of power supply.

The DisCos’ current Capital Expenditure (CAPEX) is being reviewed, along with inflation rate, gas price, foreign exchange rate, and existing power generation capacity to ensure cost-reflective rates for the companies.

The government hopes that this investment will lead to improved power supply and a more stable electricity grid for the country.

The Nigerian government has recognized the need for significant investment in the electricity distribution sector to improve power supply and meet the needs of its growing population.

With the right investment and management, the DisCos can provide a more reliable and efficient electricity supply for the country.