Investors in the Nigeria’s power distribution sector have kicked against the Federal Government’s plan to escrow revenue accounts of distribution companies (discos).
The investors insisted that any attempt to go ahead with this plan is tantamount to nationalisation or expropriation of the DISCOs. Executive Director, Association of Nigeria Electricity Distributors (ANED), Sunday Oduntan, said these in a statement yesterday.
ANED noted: “To date, the government has not met the privatisation transaction foundational requirements of providing N100 billion in subsidy to the sector. Indeed, any attempt at escrowing our accounts runs counter to the objectives of the National Electricity Power Policy, 2001 (NEPP) and the Electric Power Sector Reform Act, 2005 (2005), of a private sector-owned and managed electricity sector.
“It would also send very wrong signals to domestic and international investors that Nigeria is not fully open for private sector investment and that we are still partial to the old habits of nationalization, preventing the injection of the cheap and sorely needed capital that is critical to the rehabilitation and improvement of electricity infrastructure.