The Bureau of Public Enterprises (BPE) on Wednesday said that it would take five years for power distribution and generating companies to reap requisite returns on their investment in the sector.
Mr Benjamin Dikki, the Director-General, of BPE disclosed this during a visit to Eko Electricity Distribution Company as part of the Bureau’s evaluation of the privatised power entities in the country.
Dikki said that this was because of the age long rot in the distribution networks which heightened aggregate technical and commercial losses in the system.
He said that most of the distribution and generation companies did not witness major turn-around before privatisation.
According to him, the fact that no power component is currently being produced locally in the power sector makes it inevitable for the investors to import same which has severe financial implications on them.
“Nigerians should sacrifice at the initial stage so that necessary investment can be made in the power sector.
Dikki said the inability of many of the companies to access the N213 billion Central Bank of Nigeria (CBN) intervention fund was due to shortage of fund but efforts were on to resume the disbursement.
Speaking also, Mr Oladele Amoda said the company met a dilapidated network when it acquired the asset in Nov. 2013.
Amoda, however, said the company commenced rehabilitation of the assets which saw the replacement of over 100 transformers in the first three months of its operation.
He also said the company centralised its billing system with a view to reducing power theft.