FG says Discos suffer annual capex shortfall of N71.2b

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Distribution Companies (Discos) in Nigeria’s power sector suffered capital expenditure (capex) shortfall of $198million (N71.2billion) in the last three years, The Guardian reports.

The Federal Government, which made this disclosure in the Power Sector Recovery Programme (PSRP), said the DisCos face many challenges and constraints in terms of accessing funding for capex.

According to the PSRP, there is a lack of confidence in the Nigerian electricity industry by local and international lenders and investors, who see the sector as nascent and lacking in requisite mitigation arrangements required to meet their risk acceptance criteria.

The PSRP therefore emphasised the need for the DisCos to be restructured/refinanced, depending on the extent of their financial and operational non-performance.