Globaltimes 
FG sets to unbundle electricity companies for better efficiency For better efficiency and effectiveness, the Nigerian government is set to sell four DisCos under the management of banks and the Asset Management Corporation of Nigeria (AMCON) from their original owners. Other discos would also go for restructuring. The development comes as the Senate Committee on Power criticized the power companies over their inefficiency since they were acquired over 10 years ago and called for their overhaul. The Minister of Power, Adebayo Adelabu, said the Nigerian government has begun restructuring the 11 DisCos. He said over 100 Transmission Company of Nigeria (TCN) projects had been completed since 2001. Following this, the FG has decided to break down 11 DisCos into smaller units. “We are unbundling the Discos along state lines. Some of the Discos are too big for efficiency and effectiveness. Ibadan Disco covers seven states, making it practically impossible for them to be efficient. The minister hinted at franchising some DisCos, stating that more prominent power companies would be broken into smaller units to serve unserved communities. The minister said the Oyo State government has indicated an interest in exercising its rights in Ibadan DisCo. Adebayo stated that the Nigerian Electricity Regulatory Commission has been notified of the need to sanction DisCos that fail to perform and may even revoke their licenses. He added that new investors would be injected to revitalize the industry. They need an estimated N2 trillion ($2.5 billion) in capital. Meanwhile, four of the Discos are managed by banks and AMCON. They include Abuja Electricity Distribution Company, managed by the United Bank for Africa. Fidelity Bank manages Benin, Kaduna, and Kano DisCos, and AMCON manages the Ibadan DisCo. They are management due to their inability to repay loans to the various financial institutions. Earlier, the Nigerian government stated that those who bought the power companies when they were officially privatized in November 2013 needed more expertise and financial muscle to run them. Earlier, in an interview, Olu Verheijen, an adviser to President Bola Tinubu on energy, said the companies must be more leveraged and capitalized.
