CBN, others seek solutions to distributors' indebtedness to banks
President Muhammadu Buhari has foreclosed the possibility of the federal government backing a unilateral takeover of the 11 electricity distribution companies (Discos) by state governments following the poor performance of the Discos since the power assets were handed over to the private sector in 2013, THISDAY's investigation has revealed.
Buhari made his position known in a response to the recommendations of the National Economic Council (NEC) Ad hoc Committee on Ownership Review of the Discos and Power Sector Review.
The letter, dated June 5, 2020 and with reference number: SH/COS/08/1/A/1171, is entitled 'Re: National Economic Council (NEC) Ad hoc Committee on Ownership Review and Analysis of Discos and Electricity Sector Review.'
THISDAY obtained a copy of the letter which said: "Further to the enclosed letter GH/KD/S of April 27, 2020 on the above subject, kindly be advised that His Excellency, the President, has: (a) noted with appreciations the final report of the NEC ad-hoc committee on ownership review and analysis of the Discos and the electricity sector.
Meanwhile, a Technical Committee on Payment Discipline of the CBN has met with Discos, banks and key federal government agencies in the power sector to address the sector's liquidity challenges and prevent the possible takeover of Discos by creditor banks.
