A committee setup by the federal government and headed by Kaduna State governor, Malam Nasir El-Rufai, has recommend reversal of the 2014 privatization of the power sector.
If this recommendation is approved, all distribution companies in the country will forfeit their investment haven failed to improve power supply despite efforts put in place by the federal government on electricity generation.
Elanza News reports that many of the distribution companies got loans from the federal government to buy the DISCos at a give-away prices but failed to improve the electricity infrastructure.
The governor Nasir el- Rufai-led committee was inaugurated last year to ensure stable power supplies in the country.
After receiving the report, the National Economic Council (NEC), has described the 2014 privatization of the power sector as a “total failure.”
NEC, just as the recommendation of the El-Rufai-led committee, said there is the need for a reversal of the sale of the power sector.
Briefing State House Correspondents after the monthly meeting of the Council, presided over by Vice President Yemi Osinbajo, el-Rufai lamented that “electricity supply in the country has broken down completely”.
He said the country would not experience development and industrialization without solving the problems of electricity supply.
The power sector was privatized in 2014 by the administration of former President Goodluck Jonathan despite that the Federal Government has continued to intervene with billions of naira annually without any improvement.
Nigeria was thrown into a total blackout due to a breakdown in the national grill last week.
“This is one of the recommendations we are putting forward, but we know that it has implications. The problems are many, the entire sector is broken, there is a fundamental structural problem. Government has supported the industry with N1.7trillion in the past three years. Government will take some very tough decisions. There is a lot of blame games.
“There are more than 900 million homes in Nigeria connected to electricity. Over 80million Nigerians are without electricity.
“It is either we continue to allow the federal government pump in N1.7trillion every three years, or we take the tough decision that will ensure a stable power supply,” El-Rufai said.
He also announced that NEC will soon forward a proposal that would see the Federal Government release 20% of the over N10 trillion accumulated pension funds for infrastructure development.
The proposal if approved, will see the money given as loans to the private sector for the development of three critical areas of roads, rail and power infrastructure
The money to be given on a long-term basis will attract between 5% and 6% interest over a period of 30 years and will be recovered through allocation of right of ways on the roads to be used the land to develop properties coupon rates of 5% to 6% is being targeted.