Professor Nnaji Explains the Failure of DisCo Privatisation in Nigeria’s Power Sector

In a recent interview, Professor Barth Nnaji, the Chairman and Founder of Geometric Power and former Minister of Power, shed light on the challenges that have led to the DisCos’ failure to deliver on their mandate of providing stable and adequate electricity supply to Nigerians after privatisation. According to THISDAYLIVE, Nnaji cited a range of factors including severe infrastructure deficits, massive revenue collection losses, liquidity crises, and a lack of competition among DisCos as some of the key reasons for this ongoing issue.

“There are massive infrastructure deficits in the DisCos, which has led to the inability of these companies to provide the required electricity supply to Nigerians,” Nnaji explained.

“Additionally, there have been significant revenue collection losses, which have further compounded the DisCos’ financial difficulties. These losses are due to a variety of factors such as estimated billing, poor metering systems, and unpaid bills by consumers,” he added.

Nnaji also highlighted the persistent liquidity crises faced by the DisCos, which have hindered their ability to invest in necessary infrastructure upgrades and improvements. He also pointed out the lack of competition among the DisCos, which has resulted in a lack of incentives for them to improve their services.

“In some cases, the DisCos have been unable to generate sufficient revenue to meet their operational expenses, leading to a vicious cycle of debt and inadequate service delivery,” Nnaji noted.

His comments echo those made by other experts in the power sector who have expressed concerns about the ongoing challenges faced by the DisCos in meeting the electricity needs of Nigerians. The privatisation of the power sector was intended to address these issues, but it appears that much work remains to be done to achieve the desired outcomes.

The full interview with Professor Nnaji can be found on THISDAYLIVE.