Vice President Yemi Osinbajo has faulted electricity distribution companies (DisCos), accusing them of performing below expectation.
Speaking at the inauguration of some transmission lines at in Abeokuta, Ogun state capital, on Thursday, Osinbajo said the 11 DisCos are only able to distribute 4,000MW or less out of 7,000 generated.
The vice-president, who said there is need for a “substantial change of strategy”, did not state what the new approach should be.
The distribution capacity in the 11 Discos are significantly low, hovering at around 4,000 megawatts on average with a peak at about 5,400MW,” he said.
“So, despite all the availability of about 8,000MW of generation and 7,000MW of transmission capacity, the lack of Disco infrastructure to absorb and deliver grid power to end-users has largely restricted generation to an average of about 4,000MW, and sometimes even falling below 4,000MW.
“It is evident that despite all the efforts that has been put into trying to expand the grid…the structure of the market today cannot deliver on the government’s promises to provide power for domestic and industrial use.
“A substantial change of strategy is necessary. There is clearly a need for a change of strategy. What we have done in the past has taken us to a point where there is clearly a change of strategy.”
The senate had asked the federal government to divest its 40% stake in DisCos and give experts in the field an opportunity to invest in the sector.
The government is reportedly considering taking over the distribution assets from the investors and pay them off with N736 billion.