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DISCOs urge N’Assembly to rescind decision stopping N309b bond


Electricity Distribution Company

Electricity Distribution Company

• MDAs debt hit N78.6b as IBEDC threatens disconnection

Electricity distribution companies at the weekend called on the National Assembly not to cancel the proposed N309 billion bond to the sector.

Speaking under the umbrella of the Association of Nigeria Electricity Distributors (ANED), at the weekend, the Discos said the fund was needed to support the sector to come out of its liquidity challenges.

Director of Research and Advocacy for the group, Mr. Sunday Olurotimi Oduntan, told newsmen in Abuja that the bond was a legitimate request and should not be stopped.

The House of Representatives had frowned at plans by the Federal Government to secure N309 billion bond to finance the shortfall in the Nigerian electricity market and called for it to be stopped.

The Federal Ministry of Power, Works and Housing initiated the move to raise a Federal Government-secured bond of N309 billion using the Nigeria Bulk Electricity Trading Company (NBET), allegedly to cover the market shortfall made up of N187 billion accrued in 2015 and N122 billion projected shortfall for 2016.

Oduntan stated, “Recently the National Assembly called for the stoppage of the N309billion fund for the sector. The fund is legal and the NASS should not cancel it.

“The current MYTO (Multi Year Tariff Order) for the privatised industry is modelled after that of New Delhi in India. Government ought to have provided some funds to close the gap in the first two years after handing over but it was not done.”

Similarly, the Discos say the debts owned by Ministries, Departments and Agencies (MDAs) of government had risen to N78.6billion as at last month (April).

Meanwhile, the Chief Commercial Officer of the Ibadan Electricity Distribution Company Plc, IBEDC, Mr. Deolu Ijose, weekend told The Guardian that his organization is being owed over N7 billion, out of which Ministry of Defence, alone have about N5.1 billion against them.

He explained further that other Federal Government agencies have a deficit of about N1billion against them, adding that the Oyo State government owes the organization about N1.4 billion.

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