Nigeria commits $3bn to power transmission, distribution

Vice President Yemi Osinbajo has said that revenues collected by electricity Distribution Companies (Discos) increased by 63 per cent because of reforms carried out in the power sector.
The reforms, he said, included the introduction of Service-Based Tariff (SBT).
Osinbajo make the remarks in a paper on “Strategic Responses of the Energy Sector to COVID-19 Impacts on African Economies,” at the 14th annual conference of the Nigerian Association of Energy Economics (NAEE).
The vice president said with increasing funding, the power sector would soon be fully financed by the market, rather than government subsidies.
Although, it remains debatable if the rising revenues accruing to the Discos have reflected in the supply of electricity to Nigerians.
Osinbajo did not mention the new monthly collection, but the Discos posted a record N44.5 billion revenue collection in September 2020, the highest ever recorded by the power distributors, a month after the Central Bank of Nigeria (CBN) directed banks to take over the collection of revenues from the Discos.


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