The Minister of Power, Chief Adebayo Adelabu, has expressed the Federal Government’s interest in transferring the oversight of the distribution segment of the Nigerian Electricity Supply Industry (NESI) to state governments. A statement from the Minister’s office over the weekend revealed that Chief Adelabu conveyed this intention during a visit to Abuja by Governor Alex Otti of Abia State.
Highlighting the substantial investments made in the sector over the years, the Minister emphasized the crucial role of state governments in the distribution segment. This role encompasses infrastructure enhancement, reducing metering gaps, enforcing bill collection, rural electrification, combating power theft, preventing asset vandalization, and securing the right-of-way for transmission lines.
To facilitate the involvement of state governments, the Minister suggested the unbundling of various regional Distribution Companies (DisCos) into different states, enabling more localized oversight. He proposed exploring financial collaboration modalities between the federal and state governments, potentially involving a swap of Federal Government stakes in DisCos with state stakes in the Niger Delta Power Holding Company (NDPHC).
Adelabu also underscored collaboration opportunities in rural electrification, urging states to establish active rural electrification boards in coordination with the Ministry’s Rural Electrification Agency (REA). Recognizing the importance of state support, especially in providing distribution transformers and replacing weak power lines, the Minister emphasized the need for reliable and functional power supplies.
Governor Otti, accompanied by key officials, commended the Minister’s well-thought-out strategies and expressed support for the transformative efforts in the power sector.
