Enterprise Television- Nigeria Provides Details on N72 Billion Investment Plan for Discos
The Federal Government has provided more details on the N72 billion financial facility the country plans to provide for the 11 electricity distribution companies (Discos) in Nigeria to upgrade and expand their networks.
It said the facility would be a shareholder loan which the Discos must be willing to match or it would be converted to equity.
The government has 40 per cent shareholding in them while the core investors of the Discos maintain 60 per cent shares; this was according to the Discos’ privatization terms. Also, it was indicated by the government that Transmission Company of Nigeria (TCN) would be the source of the facility as well as its manager.
Managing Director of the TCN, Mr. Usman Mohammed, on Tuesday while commissioning a 60MVA high voltage transformer at TCN’s Bauchi transmission substation disclosed details of the investment plan.
According to Mohammed, the new transmission facility will improve the capacity of the substation from 70MVA to 130MVA, and improve electricity supply to Bauchi and other areas which include Ningi, Naborodo, and Das communities.
Mohammed revealed that the Federal Government was approached and an agreement was made that TCN is going to invest in distribution on behalf of Ministry of Power, Works and Housing and we already have N72 billion which has been approved by the Federal Executive Council for this purpose.
“Where we discover that we have load and that load cannot be taken by the Disco, we apply this fund to assist in expanding that network so that it can take the load. The fund is like shareholder loan to distribution companies which they must match or it will be converted to equity.”
He noted that the TCN has continued to expand the transmission network, adding that it has in the 11 months, installed more than 18 power transformers using its in-house engineers.
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