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FG discloses how the problem of the power sector was created

• The Federal Government has traced the problem in the power sector to the sales of power generation and distribution companies to incompetent investors by the previous administration of President Goodluck Jonathan. Mohammed said, “Before we came in, the power sector had been privatized by the previous administration, but the people they sold to them are incompetent. When we assumed power, we met the mess. Apart from the fact that the Distribution Companies (Discos), could not meter the people, they also could not pay for the electricity generated by the Generation Companies (Gencos), from the Nigerian Bulk Electricity Trading Companies.’’
• “We had two options – cancel the entire sales or to get the Discos to recapitalize. We took over the debt of the Discos, which was about N701 billion, because of the effect the cancellation of the sale will have on the country and international investors. The people are simply incompetent and if we did not provide the money that means they will not distribute power to anybody,” he said

• This disclosure was made by the Minister for Information and Culture, Alhaji Lai Mohammed, while responding to questions on electricity tariff adjustment, at a meeting with Online Publishers Association of Nigeria, on Saturday, September 26, 2020.

• According to News Agency of Nigeria (NAN), Mohammed said that the federal government had spent N1.7 trillion to subsidize electricity tariff after the previous administration sold and handed over to the investors, an expenditure he said is no longer sustainable especially under the prevailing economic conditions.
• He pointed out that the country’s revenue and foreign exchange earnings had dropped sharply by almost 60% due to the downturn in the fortunes of the oil sector.

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