The federal government says it would sell off five electricity distribution companies (DisCos) under the management of banks and Asset Management Corporation of Nigeria (AMCON) in the next three months to technical power operators.

Adebayo Adelabu, minister of power, spoke in Abuja on Monday when the members of the senate committee on power visited the ministry.

The five DisCos include Abuja Electricity Distribution Company (AEDC), currently under the management of the United Bank for Africa (UBA); Benin Electricity Distribution Company, Kaduna Electricity Distribution Company, and Kano Electricity Distribution Company, managed by Fidelity Bank, while Ibadan Electricity Distribution Company is under AMCON management.

The DisCos are under the management of the banks and AMCON due to their debt burden.

Adelabu said the energy distribution assets are technical and as such, they should be under the management of technical experts.

He also said the tough decision on the DisCos has become necessary because the entire Nigerian Electricity Supply Industry (NESI) fails when they refuse to perform.

According to Adebayo, the ministry will prevail on the Nigerian Electricity Regulatory Commission (NERC) to revoke underperforming licenses and also change the management board of the DisCos if it becomes the solution.

“On distribution, very soon you will see that tough decisions will be taken on the DisCos. They are the last lap of the sector. If they don’t perform, the entire sector is not performing,” Adebayo said.

”The entire ministry is not performing. We have put pressure on NERC, which is their regulator to make sure they raise the bar on regulation activities.

”If they have to withdraw licenses for non-performance, why not? If they have to change the board of management, why not?

“And all the DisCos that are still under AMCON and Banks, within the next three months, must be sold to technical power operators with good reputations in utility management.

“We can no longer afford AMCON to run our DisCos. We can no longer afford the banks to run our DisCos. This is a technical industry and it must be run by technical experts.”

The minister further said it has become necessary to reorganise the DisCos for efficiency.

He stressed that Ibadan DisCo is too large for one company to manage.

FG TO REVOKE METRE CONTRACT FROM FIRM

Adelabu also dropped the hint that the federal government mobilised a company named Messr Zigglass with $200 million (N32 billion) to supply three million meters that were yet to be supplied to date.

“If you held N32 billion for these years, where is the interest,” he asked.

According to Adelabu, President Bola Tinubu directed that the contract be revoked.

He said the government will bridge the current eight million metering gap in the next four to five years.

The minister said the funding for the metre is coming from a seed capital of N100 billion and N75 billion.

He added that the Nigerian Sovereign Investment Authority (NISA) is coming to the aid of the ministry with the fund.

The naira yesterday depreciated further to N1,260 per dollar at the parallel section of the foreign exchange (FX) market.

The latest figure represents a 2.44 percent drop from the N1,230 per dollar traded on April 19.

Currency traders, known as bureau de change (BDC) operators, quoted the buying rate at N1,230 and the selling price at N1,260 — leaving a profit margin of N30.

At the official window, the naira depreciated to N1,234.49 against the dollar on Monday — a 5.51 percent decline from the N1,169.99/$ traded on April 19.

The local currency traded at a high of N1,295 and a low of N1,051, according to FMDQ Exchange, a platform that oversees official FX trading in Nigeria.

Meanwhile, the Central Bank of Nigeria (CBN), on April 20, said it is doing everything possible to achieve a stable FX rate.

Speaking during a press conference held at the annual meetings of the International Monetary Fund (IMF) and World Bank Group, Yemi Cardoso, CBN governor, said the regulator is also working to ensure the exchange rate finds its adequate price discovery level.

“Again, to be honest, I think we should expect that there will be increases here and there, ups and downs and even from what you’ve reported yesterday, from what I gather, the naira has begun strengthening overnight,” he said.

He added that the local currency will continue to appreciate against foreign currencies.

Emirates Airlines, in conjunction with FlyDubai, has resumed its regular flight operations from Dubai International Airport, marking a pivotal moment in the restoration of normalcy following the recent disruptions.

The decision on flight resurgence was finalised on Saturday, April 20, 2024, after the unprecedented rainfall, resulting in significant flooding across the city, inflicted substantial challenges on Dubai International Airport, disrupting flight schedules and causing numerous cancellations and delays.

Emirates Airlines, the largest carrier at the airport, bore the brunt of the impact, with approximately 400 flights cancelled, exerting strain on passengers and airport infrastructure.

Tim Clark, President of Emirates, acknowledged the gravity of the situation, highlighting the formidable obstacles presented by the adverse weather conditions. The inundation prompted Emirates and FlyDubai to temporarily halt check-in and transit services at Dubai International Airport, leaving thousands of travelers stranded amidst the chaos.

Speaking via a statement in his open letter addressed to passengers, Clark recognized the frustration stemming from congestion, lack of information, and confusion within the terminals.

“Most sincere apologies to every customer who has had their travel plans disrupted.” With the airport struggling to manage the aftermath of the flooding, hundreds of thousands of passengers found themselves stranded, exacerbating the challenges faced by Emirates, the world’s busiest international aviation hub.

“We acknowledge and understand the frustration of our customers due to the congestion, lack of information, and confusion in the terminals.

“We acknowledge that the long queues and wait times have been unacceptable.”