Discos worry N700b loan may reduce losses but won’t guarantee performance

0
149

Power distribution companies (DisCos) are worried that the N700 billion Federal Government’s loan may not be enough to take care of their obligations, The Nation reports.

Their fear stems from the foreign exchange rate, which has increased the cost of production, and worsened the state of the economy. But they believe the loan would help to reduce their shortfalls, urging the government to extend similar assistance to other operators.

The Director of Research, Association of Nigerian Electricity Distributors (ANED), Mr. Sunday Oduntan, said the firms may not be able to record much growth with the money. “Although, it would help in reducing operational losses it cannot guarantee the firms’ optimum performance,” he said.

He also urged the government to provide a lifeline to operators in the upstream, midstream, downstream, as well as others in the oil and gas value chain, as extending such a lifeline to E&P players will go a long way to boost gas supply to the thermal power plants and improve electricity supply.