The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has disclosed that the Federal government will use portions of its 40% shares in the 11 electricity distribution companies (Discos) to raise funds for the expansion of the distribution networks.
Fashola stated in Abuja while briefing State House correspondents on the outcome of the last Federal Executive Council (FEC) meeting, that the FEC approved the ministry’s memo aimed at providing a framework of investment in expanding the distribution network so they can deliver an extra 2000 megawatts (mw) of electricity.
“The framework for investment to improve distribution capacity will involve competitive international tendering and procurement. The federal government will contribute 40 per cent of the needed investment based on its 40 per cent Disco ownership, while the Discos will contribute 60 per cent,” he added.