Governors of the 36 states in Nigeria have reportedly agreed to work together to tackle the issue of poor power supply in the country. As part of their efforts, the governors have agreed to take steps to break the monopoly of the Distribution Companies (Discos) in power distribution across the states.
This move follows the constitutional amendment signed by President Muhammadu Buhari in March 2023, which allows states to license, generate, transmit, and distribute electricity.
The governors are expected to leverage this new constitutional provision to improve the power supply situation in their respective states. As part of measures to achieve their objective, the governors have agreed to develop alternative sources of energy and set up their own power companies to compete with the Discos.
The state governors are also reportedly considering franchising un-served communities under the Discos. The move by the governors is seen as a positive step towards finding a lasting solution to the issue of poor power supply in Nigeria.
With the constitutional amendment allowing states to take charge of the power sector, there is renewed hope that the power supply situation in the country will improve in the near future. The government has also recently ordered the restructuring of the Discos to break their monopoly and improve efficiency.
The Minister of Power, Adebayo Adelabu, has disclosed that the government plans to franchise un-served communities and revoke underperforming licenses.
He also emphasized the need for the federal and state governments to exercise their rights in the operation and management of the Discos, as they still own 40% of the firms.
Organized labor, comprising the Nigerian Labour Congress and Trade Union Congress, has also called on the 36 states and the Federal Capital Territory to work out modalities to break the monopoly of the Discos.
The labor unions argue that the Discos are enjoying a monopoly in power distribution, making them behave in ways that are unfavorable to their customers. Overall, the recent developments in the power sector in Nigeria are seen as a positive step towards finding a lasting solution to the issue of poor power supply in the country.
With the states and the federal government taking proactive measures to improve the situation, there is renewed hope that Nigerians will soon enjoy a stable and reliable power supply.