Osinbajo asks DISCOs to properly fund their operations or sell them

Acting President Yemi Osinbajo

Vice President Yemi Osinbajo has asked the 11 electricity distribution companies (DISCOs) operating in the country, to invest more in their businesses to run them profitably and improve power supply.

Otherwise, Osinbajo advised the DISCOs to sell their businesses.

Osinbajo spoke on the issue, while responding to a call by chairman of Heirs Holdings Limited, Mr Tony Elumelu, that government should invest in the DISCOs, in which it has 40 per cent equity.

Elumelu said, “Mr. VP, I know some of the operators in this sector will not like this. This is my idea. We cannot reverse what has been done, but we can creatively address what has been done.

“If the government, to my understanding, has 49 per cent of the DISCOs and the private companies have 51 per cent, can we ask these companies to recapitalise? Let the Federal Government recapitalise them. They will not be able to put in more capital. So, the Federal Government, through the Federal Ministry of Finance Incorporated, should increase its holding.”

The Vice President said the discos have to shop for fresh fund to improve on their performances, as the Federal Government does not have the fund to invest in them.

 

 

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