The Power Distribution Companies (DisCos) are to blame for the poor electricity supply, Minister of Power Saleh Mamman, said on Wednesday.
He said the Federal Executive Council (FEC) will now decide the fate of the DisCos, after reviewing the memo on their performance.
Their licences may be under revocation threat, as indicated by Mamman.
The minister said DisCos have failed to meet up with their obligations while the government is no longer willing to continue subsidising them.
There are 10 DisCos. These are: Ikeja Electric, Benin DisCo, Abuja DisCo, Kano DisCo, Port Harcourt DisCo, Ibadan DisCo, Enugu DisCo, Eko DisCo, Jos DisCo, and Kaduna DisCo.
The 11th, Yola DisCo, is now in the hands of government.
To reduce the influence of the DisCos, the minister said the government had “signed a Memorandum of Understanding with the German government and Siemens. They are to align between distribution, transmission and generation so that if we generate 13,000 megawatts, transmission will take the whole 13,000 and will distribute same. That way, Nigerians will be happy and everyone will have 24/7 electricity supply.”
The minister added: “The DisCos are manning the distribution that is why I have submitted my observations to the government. It is left for the government to decide.
On the financial interventions the government had made so far in the power sector, Mamman said: “If they are ready to continue, fine, but if they are not ready to continue maybe they should give way to whoever is ready to come and invest.
“We are asking government to review and see if they are capable but if they are not capable they should give way.’’