Following the Federal Government’s opening of yet another fresh window for financial drainage through the Minister of Power, Works and Housing, Mr. Babatunde Fashola’s declaration that another N39 billion bailout would be made available for Distribution Companies (Discos), some stakeholders have criticized the move, The Sun reports.
Yemi Oke, Associate Professor, Energy/Electricity Law, Faculty of Law, University of Lagos, said government has no business in the power sector other than regulation given the fact that government has been funding the power sector for strange reasons while the current regime has already spent N740 billion in power sector intervention without results to show for it.
On his part, Chairman, National Association of Small Scale Industrialists (NASSI), Mr. Tayo Kuti-George, said the latest intervention of N39 billion to the Discos for metering plan has clearly shown that the privatisation exercise was fundamentally wrong. He said despite investors shortchanging government on what they paid for assets, releasing another N39 billion for them when some other critical sectors of the economy are begging for attention is a slap on Nigerians.
Partner, Bloomfield Law Practice, Mr. Ayodele Oni, also explained that the cost of providing meters should have been factored in at privatisation, warning that continued government intervention in the sector can create moral hazards, as market participants continue to expect the government to bail them out.