The Federal Government wants to transfer control of the Nigerian Electricity Supply Industry’s (NESI) distribution division to the state governments, according to Chief Adebayo Adelabu, Minister of Power.
According to a statement issued by the Minister’s office over the weekend, Chief Adelabu mentioned this when Governor Alex Otti of Abia State paid him a visit in Abuja.
The Minister noted that having invested over the years in the sector, state governments would play pivotal role in the “distribution segment, encompassing infrastructure enhancement, reducing metering gap, enforcing bills collection, rural electrification, combatting power theft, preventing asset vandalization, and securing right-of-way for transmission lines.”
He stressed that to achieve this, the Ministry plans to collaborate closely with state Ministries of Power, Energy and Public Utilities.
To expedite state governments involvement, the Minister proposed unbundling various regional DisCos into different states, allowing for more localised oversight.
He said: “Financial collaboration modalities between the federal and state governments will be explored, possibly involving a swap of Federal Government stakes in DISCOs with state’ stakes in the Niger Delta Power Holding Company, NDPHC.”
Adelabu also highlighted collaboration opportunities in rural electrification, encouraging states to establish active rural electrification boards working in tandem with the Ministry’s Rural Electrification Agency, REA.
“Support from state governments in the provision of distribution transformers and replacement of weak power lines is deemed crucial for achieving reliable and functional power supplies.”
On his part, Governor Otti accompanied by key officials, commended the minister’s well-thought-out strategies and expressed support for his transformative efforts.