The electricity distribution companies (Discos) in Nigeria’s power sector have cautioned the federal government against unilaterally investing N72 billion to upgrade their distribution networks, stating that they may not be able to recover it from the current tariff they charge for distributing power to consumers.

Speaking through their umbrella association – the Association of Nigerian Electricity Distributors (ANED), in a statement, the Discos explained that they would have welcomed the planned investment but were cautious of it based on their evaluation of its processes.

According to them, the investment if not evaluated and appropriated by the Nigerian Electricity Regulatory Commission (NERC), as part of the laws governing investments in their networks, would become a pitfall to their operations. They also pointed out the heavy illiquidity crisis in the sector as another reason for their cold shoulders to the investment.

Source: THISDAY