The Federal Government has revealed that it has no intention of renewing licensing agreements for underperforming electricity distribution and generation companies (GenCos & DisCos) in Nigeria.
The Minister of Power, Adebayo Adelabu disclosed this yesterday, while speaking during the commencement of the three-day inaugural Nigerian Electricity Supply Industry, NESI, Market Participants and Stakeholders Roundtable (NMPSR) in Abuja.
He expressed regret over the fact that, a decade after the privatisation of the power sector in November 2013, the operators have been unable to fulfill the set objectives.
Adelabu insisted that for operators that have not met expectations, their licenses will be revoked.
He said, amongst others: I mentioned that ten years ago when they were issued, the licences are expiring; and its time for renewal. Renewal is not automatic. Any privatised company that have not lived up to expectations will not have their licence renewed. We have to know whether you have complied with the terms and conditions of the licence you have been given.
I mentioned in my speech that most countries do not privatise their electricity supply value-chain; from generation to transmission to distribution. But bad enough, we have done this; how can we work around the current status to achieve our priorities and objectives?
And I said its not a job for one person or a set of stakeholders. Its a job for everybody. We all have a role to play. We must all come together and play our roles so that we come out strong and achieve success in the industry.
Recall that in November 2013, the power sector was privatised, with six power generation plants and 11 electricity distribution companies.
