More details are emerging on the N72 billion financial facility plans by the Nigerian government from which the 11 electricity distribution companies would upgrade and expand their networks. The EnergyNewsTM team found out that the facility would be a shareholder loan that the Discos have been asked to match or convert to equity.

This is because, in the Discos’ privatization terms, the government is a 40 percent shareholder while the core investors of the Discos own a 60 percent stake. For this reason, the government has indicated that the Transmission Company of Nigeria (TCN) would be the source of the facility as well as act as its manager.

The Minister of Power, Works and Housing, Mr Babatunde Fashola, said: “the government plans to invest the sum on the Discos”. He also said that the financial facility would help the Discos expand their networks so that they will be able to supply stranded electricity from the generation companies (Gencos) to electricity consumers in the country.

Read more...http://energyworthonline.com/2018/05/22/tcn-to-manage-n72bn-investment-funds-for-discos/

.