Why 11 DisCos Must Capitalise For N1.5trn Investment Needs

By Ikenga Chronicles October 8, 2018

Why 11 DisCos Must Capitalise For N1.5trn Investment Needs

The Managing Director of the Transmission Company of Nigeria (TCN), Mr. Usman Gur Mohammed, has explained the need for 11 Distribution Companies (DisCos) to capitalise to meet the estimated $4.262 billion (about N1.549 trillion) funding for new transformers and injection substations, Daily Trust reports

Mohammed who spoke at an interactive forum for retired NEPA/PHCN/TCN staff in Abuja last weekend, said TCN launched a Transmission Master Plan in February, 2018, that showed the DisCos needed the fund to expand their networks for over 20,000 megawatts (MW) of electricity in few years.

He said, “When we simulated our investments, we also simulated the DisCos’ investments. The investment requirement of the DisCos is $4.2bn as hard investment in injection substations, feeders and transformers.

“What we are suggesting is that the DisCos need capitalisation. Capitalisation will come with new management for efficiency. If government increases the capital requirement of the DisCos, they will go and look for other competent investors and we believe this is our position,” Mohammed submitted.