Business Hilights

Tracking Nigeria's Headline Business News Online

Babatunde Fashola

ActionAid, others deepen calls for review of power sector concessions

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In line with observed failures in the performance of every department in the Nigerian power sector operations especially generation and distributions, ActionAid, an international development organisation working in Nigeria and 44 other countries, has called for review of the agreements.

It would be recalled that a senior official of the Ministry had last week revealed that the plan of the government is not to review the privatization, but to review the operations of the companies.

ActionAid was clear in its position, saying the privatisation of Nigeria’s power sector has failed and should be reviewed by the Federal Government if it wants the country to make progress in the electricity industry.

The global agency in a statement noted that electricity has continued to be a major challenge in Nigeria, adding that the private investors that bought over the power firms have failed to live up to expectation.

Business Hilights recalls that the sector was officially privatised and handed over to investors on November 1, 2013 by the Federal Government. Before the privatisation of the sector, the whole power value chain was run by the defunct Power Holding Company of Nigeria.

Key actions after the privatization was the unbundling into the power distribution, generation and transmission segments. The successor power distribution and generation companies formed from the exercise were sold to investors, while the government retained the TCN for security reasons.


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