The Federal Government, at the weekend, said it inherited a N37 billion contract for the supply of three million meters to the Power Holding Company of Nigeria (PHCN), Independent reports.
The government said the contract was issued in 2003 and was not executed until the privatization of the nation’s power sector was concluded in 2013. Mr. Babatunde Fashola, Minister of Power, Works and Housing, who disclosed these at the Department of Economics Public Lecture Series said the development caused N119 billion judgment to be entered against the incumbent government.
“ We have worked to get the case out of court , negotiate the judgment and go back to the N37 billion contract to see how many meters it can now provide and how to install them. We are still finalizing the terms of agreement”, he added.
Fashola, who picked holes in the privatisation of the power sector, also said one of the omissions of the exercise carried out by the last administration was lack of compulsory metering before the privatisation. This, he added, was compounded by an inaccurate consumer projection of six million households, without a consumer audit.