Managing Director of Transmission Company of Nigeria (TCN), Mr Usman Mohammed, on Wednesday, disclosed that a whooping sum of $4.3 billion worth of investment is required by the Distribution Companies (DISCOs) by 2020 to perform optimally
Mr Mohammed disclosed this in Abuja, during a powerpoint presentation on the activities of the company to the Speaker of the House of Representatives, Hon. Femi Gbajabiamila and member of the Body of Principal Officers.
He added that the Nigeria power sector attracted up to $1.6 billion worth of investment from various Development Partners including World Bank and African Development Bank (AfDB) as at December 2018.
He lamented that there has been no meaningful investment made by the DISCOs, hence the inability to off-take available energy from the power generating companies, GENCOs.
He told the lawmakers that the current energy losses being experienced in the industry will abound and lead to a high tariff imposed in electricity consumers, adding that the billing system from DISCOS is not justifiable.
He explained that modalities and templates for the recapitalization of the DISCOs have been put in place.
While speaking on the challenges facing the sector, Mr Mohammed disclosed that “as we speak National grid has no spinning reserve despite sending necessary information for its approval to relevant authorities.
He also noted that the controversy surrounding SCADA is yet to be resolved as there was an endemic communication gap, stressing that the three attempts made earlier failed.
In his remarks, Speaker of the House of Representatives, Hon. Femi Gbajabiamila who frowned at the poor power supply across the country, stressed the need to address the challenges headlong.