The Minister of Power, Works and
Housing, Mr. Babatunde Fashola, has advised owners in Nigeria’s
electricity sector, especially in the distribution segment of the value
chain, to embrace new commercial frameworks suitable for them to
minimise their operational risks and grow their investments portfolios.
He said that such framework will help
the operators cope optimally in the new commercial environment of the
power sector, adding that it will address the problem of inadequate
liquidity in the electricity industry.
A statement from the ministry of power
Wednesday in Abuja stated that Fashola made this remark while receiving a
delegation from the Nigeria Economic Summit Group (NESG) led by its
Vice-Chairman, Mrs. Sola David-Borha.
He said power asset owners should be
ready to bring in more funds by offering to dilute their stakes in
exchange for sorely needed inputs like meters, transformers and other
equipment required for systems upgrade.
He stressed that it would make more
business sense for operators to give up some of their shares in exchange
for funds and capital.
Fashola said if this advice is acceded
to by operators, it will make for redistribution of their risk assets in
exchange for equipment and capacity to drastically reduce the
prevailing high occurrences of commercial and technical losses in the
sector.
He further reminded operators that the
success of the power privatisation exercise solely rest on the
distribution end in the value-chain, hence, they should step up their
collections to meet the time-lines agreed with government for all
parties to respect agreements and take full responsibility for their
actions.
Fashola also commended the leadership of
NESG for expressing willingness to partner with his ministry in
proffering solutions to the sector’s challenges through constant
engagements.
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