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Punch Newspapers punchng.com 01 Aug, 2022 06:00 am

FG failed to provide N100bn electricity subsidy – Discos

FG failed to provide N100bn electricity subsidy – Discos
Electricity distribution companies on Sunday reacted officially to the takeover/restructuring of five Discos by the Federal Government through the Bureau of Public, describing the move as a backdoor renationalisation of the power firms.

1st August 2022 File photo: A power transmission Substation 1st August 2022 Electricity distribution companies on Sunday reacted officially to the takeover/restructuring of five Discos by the Federal Government through the Bureau of Public, describing the move as a backdoor renationalisation of the power firms.The Federal Government through BPE had announced the planned takeover of Kano, Benin and Kaduna electricity distribution companies by Fidelity Bank Plc after the bank initiated action to take over the boards of the three Discos.“We believe that it is reasonable to conclude that the resultant outcome has been an expropriation or backdoor renationalisation of the Discos by the Federal Government,” ANED stated in a statement issued in Abuja.“Fundamentally, the basis of privatisation was flawed from the beginning due to conditions that were not met by the Federal Government, while expecting the Discos to meet their performance obligations.

“While the Discos are not exonerated from responsibility for performance failures, it would be unrealistic to reach related conclusions without taking into consideration the factors that have been listed previously, as well as the Federal Government’s contributions to these challenges.” The association argued that due process was not followed and that the Federal Government, as a 40 per cent minority shareholder, was represented by the director-general of BPE on the board of each of the Discos and was party to all decisions concerning the operations of the Discos.

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