Electricity distribution companies in the country on Wednesday officially reacted to the recent plan by the Federal Government to review the processes that saw the handing over of 11 successor companies of the Power Holding Company of Nigeria (PHCN) to new investors on November 1, 2013, Independent reports.
Specifically, the investors said in Lagos that the planned review is a distraction, adding that inherent dangers in the exercise outweigh the supposed benefits the government would derive from the review of the auction of the assets, which, they said, was adjudged to be transparent. Zainab Ahmed, Minister of State for National Planning, had penultimate week conveyed Federal Government’s intent to review the privatization of the assets due to inherent challenges in the power sector.
But at a workshop for energy journalists on Thursday, Sunday Oduntan, Executive Director, Research and Advocacy of the Association of Nigerian Electricity Distributors (ANED), said the cancellation of the privatisation would worsen the sector, and portray to foreign investors that Nigeria does not respect the sanctity of contract. He added that privatisation was not responsible for the stunted growth of the power sector, but instead it was the inconsistent regulatory framework, which paved way for the liquidity crisis therein.