DisCos Lament Delay of N300 Billion Subsidy from Federal Government

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The power distribution companies (DisCos) are seeking the payment of N100 billion subsidy owed them by the Federal Government to improve their infrastructure, The Nation reports.

The firms said the government, during the privatization in 2013, promised them N100 billion to cushion the effects of increased tariffs on their operations, adding that four years later the government was yet to fulfill its promise.

They are also seeking the payment of debts owed by the Ministries, Departments, and Agencies (MDAs). The Association of Nigerian Electricity Distributors (ANED) Executive Director, Research, and Development, Mr. Sunday Oduntan, said the development became necessary to change obsolete infrastructure.

He said the DisCos inherited old facilities from the defunct Power Holding Company of Nigeria (PHCN), adding that the problem was affecting the distribution of electricity in the country. He said the payment of the subsidy and debts would help the firms in strengthening their operations.

Source: Energy Mix Report

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