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FG to DisCos: You have failed, your days numbered

•Power Minister Mamman
The Federal Government, on Wednesday, declared that Distribution Companies (DisCos) have failed in distributing power across the country.
This is even as it has declared it will no longer subside the DisCos noting that despite doling out about N1.7 trillion to the companies in three years, they were only able to distribute 3,000mw out of about 10,000mw generated.
The Minister of Power, Saleh Mamman, made this closure at the end of the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari.
Mamman who briefed alongside his colleagues from Ministries of Information and Culture, Water Resources, Industry Trade and Investment explained that while the DisCos were collecting the 3,000mw, they were only paying for 1,000mw.
The minister said the DisCos must show that they have the capacity to distribute power to Nigerians or surrender for more competent companies to be engaged.
Mamman said the government cannot continue to subside the companies without commensurate result.
The minister further disclosed that he presented the report before the council to decide immediately.
Recall that the governor of Kaduna State, Nasir el-Rufai, at the end of last month’s National Economic Council meeting disclosed that the Federal Government has spent N1.7 trillion on electricity in the last three years.
The governor who is the head of the ad-hoc committee on power had said: “What we have agreed on is that there are fundamental problems in the electronic supply industry, and that you cannot privatise an industry and then over three years since privatisation, you pump in N1.7 trillion of government into it. That is not privatisation.
“The Federal Government has supported the electricity sector with N1.7 trillion in the last three years and this is not sustainable. So, solutions must be found. Those solutions are not going to be nice. They may be painful, but the only way to solve the structural problems in the industry is to take some very difficult decisions.”
Giving details of what transpired at the council meeting, Mamman said: “We presented achievements right from the day we took the oath of office to date.
“We want to tell Nigerians what we achieved in the value chains. Nigeria can generate up to 13,000 megawatts of electricity but we cannot transmit all. So today, we presented to the council the solution to the problem of our generation. It is mainly distribution.
“We can transmit, we can generate 13,000 megawatts, we transmit 7,000 megawatts but can only distribute 3,000. There is a lot of work to be done in transmission companies and the government is now willing to take up the matter immediately.”
Asked what exactly the council has revolved to do, the minister said: “What I want to say is that most of the problem we are facing in this country that we cannot get electricity supplied adequately and efficiently is because we have a problem in distribution.
“Generation, no more problem. We can generate up to 13,006 megawatts but the transmission, those who are taking the electricity supply can only take 7,000 megawatts, even at that they are not taking the whole 7,000 megawatts but only 4,500 megawatts and then send to distribution, the distribution, in turn, receives only 3,000 megawatts. Because of the technical and commercial reasons, they cannot contain the whole power that has been generated.
“So, we have to correct the infrastructure. That is why I said that today, I submitted my observation to council and I believe the government is on it.
“One of the things I will tell you is that government has signed a memorandum of understanding with the German company, Siemen. They are to align between distribution and transmission and also generation.
“So that at the end of the day if we generate 13,000 megawatts, transmission will take the whole 13,000 and will distribute the same, that way Nigerians will be happy and everyone will have 24/7 electricity supply.”
On what will become of the DisCos, Mamman said: “The DisCos are the ones manning the distribution, that is why I have submitted my observations to the government; it is left for the government to decide.
“We just have to sit and see whether they are capable of – if they have the technical know-how because most of the problems we are having today are technical loss and commercial loss.
“They will give you power and may not collect your money or they will collect the money and pocket it, or they may send power and you may not have good sub-station that may collect this power and distribute it to customers. This has been our major problem and it is the responsibility of the DisCos to take care of that end.”
On what will now happen to the several financial interventions the government has made, Mamman said: “That is what we are saying, the government cannot continue subsiding because what they doing is that they collect 3,000 megawatts and pay for only 1,000 megawatts, that is 15 percent of what they are collecting; so government is the one completing the payment.
“So we cannot continue like that. So if they are ready to continue, fine but if they are not ready to continue maybe they should give way to whoever that is ready to come and invest. So, we are asking government to review and see if they are capable. Fine, but if they are not capable they should give way.”
On how the government will address the debts between DisCos and GenCos, between GenCos and gas producers, he said: “Well, we have come up with a plan, that issue of willing buyer, willing seller. You know there is the ardent capacity of generating electricity that we cannot pick at all.
“So we are now asking the GenCos…you can imagine we are only paying them 15 percent out of 100 so where do we take the remaining 85 percent? Even if Embet is collecting 100 percent, gas alone is taking 60 percent, only 15 percent is used for their overheads.
“So if they cannot week outside the agreement with the Embet you can see how they are struggling to get their money back. Embet buys electricity from DisCos, supplies to GenCos and collect money from DisCos and pay the GenCos, that is why we have the gaps and that is why we have to do something to correct these gaps. It is now government’s decision.”
Meanwhile, the FEC meeting has approved additional N6.9billion for the completion of the Tada Shonga Irrigation Project.
The project is located in Shonga, Kwara State.
The Minister of Water Resources, Mr Suleiman Adamu explained that the additional approval brought the total project cost to N10.18 billion.
The minister explained that the project was first awarded in 2010 but was later abandoned due to a lack of funds.
He said the decision to do augmentation and variation on the project and complete was in line with the Buhari regime’s stance to complete viable projects previously awarded.
The minster stated that the variation increased the size of the project from 1,500 hectares to 2,300 hectares of irrigation.
He added: “For that purpose, we sought for the augmentation and variation in the sum of N6.9 billion, raising the project from the original sum of N3.26 billion to N10.18 billion, with the completion period of 36 months.”
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FEC Backs $2.99bn Rail Projects, Sets Stage for Power Sector Shake-Up
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… Lagos Green Line, Kano, Kaduna rail schemes to boost connectivity
… Tinubu to chair power sector task force as reforms gather pace
The Federal Executive Council (FEC) on Thursday approved a $2.99 billion package of rail infrastructure projects and the establishment of a Presidential Task Force on Power Sector Reform, in a move signalling a renewed push by the administration of President Bola Ahmed Tinubu to deepen infrastructure development and unlock economic growth.
Briefing State House correspondents after the Council meeting, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the rail projects span key urban corridors and are designed to enhance mobility, reduce congestion, and stimulate regional commerce.
He listed the projects as the Lagos Green Line Rail, the Kano State Metro Rail, and the Kaduna State Rail project, noting that they have already been captured in the extended 2025 budget.
“The Federal Executive Council approved three transformative rail projects – Lagos Green Line, Kano State Metro Rail, and Kaduna State Rail project. These projects are to be sponsored by the Ministry of Finance Incorporated,” Oyedele said.
He explained that the approvals align with the administration’s broader infrastructure strategy, which prioritises rail transport as a cost-effective and sustainable alternative to road networks.
The Lagos Green Line is expected to complement existing mass transit systems in the commercial hub, while the Kano and Kaduna rail schemes are projected to boost passenger and freight movement across northern Nigeria, improving trade and economic activity.
In a related development, the Minister of Information and National Orientation, Mohammed Idris, announced the creation of a Presidential Task Force on Power Sector Reform, alongside key appointments aimed at strengthening governance in the electricity industry.
Idris said the Council approved the appointment of former Minister of Power, Lanre Babalola, as Special Adviser on Power to the President, to enhance coordination and policy oversight.
He disclosed that the President would chair the task force, with Babalola playing a central role in driving its activities.
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“The task force is part of renewed efforts by the administration to reposition the power sector as a critical driver of industrialisation and economic growth,” Idris said.
According to him, the decision followed the submission of a report by a presidential committee set up on March 4 to review the commercial and institutional framework for the proposed Grid Asset Management Company (GAMCO).
He noted that the task force brings together key stakeholders, including the Ministers of Finance, Power, Industry, Trade and Investment, Information, and the Attorney-General of the Federation, alongside regulators and representatives of electricity generation and distribution companies.
Idris said the body would focus on implementing far-reaching reforms to address structural bottlenecks in the sector, stressing that stable electricity supply remains central to Nigeria’s economic transformation.
He added that the government is committed to a comprehensive overhaul of the power sector to unlock industrial productivity and improve living standards.
The minister further disclosed that the FEC meeting was preceded by the swearing-in of a National Commissioner of the Independent National Electoral Commission (INEC) and four Permanent Secretaries.
He said President Tinubu administered the oath of office on retired Rear Admiral K. M. Marafa as INEC National Commissioner following her confirmation by the National Assembly.
Idris added that the Council deliberated on a 32-point agenda, reflecting what he described as the administration’s broad reform focus across critical sectors of the economy.
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Tinubu Fires Back at Critics: Exploiting Insecurity Won’t Stop My Second Term
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…directs action against sponsors of violence, backs Plateau peace committee
President Bola Ahmed Tinubu on Tuesday night declared that attempts by his political opponents to exploit insecurity to force him out of office would fail, insisting that he would not only remain in office but also seek a second term.
Speaking at the State House, Abuja, while receiving stakeholders from Plateau State, led by Governor Caleb Mutfwang, the President described himself as resolute in the face of political pressure.
“You are playing to the hand of agents, including my own enemies, who want to use insecurity to get rid of me. But I’m a very stubborn politician. I just refuse to go. And I will campaign for my second term,” Tinubu said.
The President warned that the Federal Government would move decisively against individuals found to be instigating or financing violence across the country, stressing that credible intelligence would be acted upon without delay.
“If you identify and you know the name of troublemakers, agents provocateur, who want to continue killing or instigate killing, let us know. We will use the instrument of office to deal with them,” he said.
Tinubu emphasised that security agencies stand ready to confront such threats once actionable information is provided, noting that the recurring cycle of violence must end.
In a move to strengthen peace efforts in Plateau State, the President also endorsed a newly constituted peace committee comprising former governors of the state, charging them to work collectively toward lasting solutions.
He directed the committee to review existing white papers on past conflicts and harmonise recommendations for implementation.
“Call one another. Ignore the Governor’s Committee if you have to, or incorporate them. Take that white paper, go through it among yourselves and agree to implement it.
“If the ones you have chosen before now are not working, you have to mix and amend membership. Forget those committees you mentioned to me, if it’s not working, it’s not working. Consider this group as the committee until we find a lasting solution,” the President said.
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Reps Give Nod to Tinubu’s $516.33m Loan Request for Sokoto-Badagry Highway
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The House of Representatives on Tuesday approved President Bola Tinubu’s request to secure a $516.33m loan from Deutsche Bank to finance Section I of the ambitious Sokoto-Badagry Superhighway project, a key infrastructure initiative under the administration’s Renewed Hope Agenda.
The approval followed the consideration of the President’s request by the Committee of Supply during plenary presided over by Speaker Tajudeen Abbas.
In a letter read on the floor of the Green Chamber, Tinubu described the Sokoto-Badagry Superhighway as a transformative national project aimed at connecting Nigeria’s far northwest to its southwestern coastline through an approximately 1,000-kilometre dual carriageway stretching from Illela in Sokoto State to Badagry in Lagos State.
The corridor is expected to pass through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, opening up major agricultural, commercial and industrial hubs across the country.
According to the President, the project was designed to stimulate economic growth by significantly improving the movement of goods and people across Nigeria’s northern and southern regions.
He said the highway will “improve north-south connectivity, safety and network performance on the corridor; reduce logistics costs and travel times by providing a continuous high-capacity expressway standard link to downstream markets and strengthen trade facilitation, food security and national cohesion through improved access between production zones, markets and ports.”
Tinubu further noted that the road project would “safeguard long-term intermodal flexibility by reserving the central median for future rail integration and accommodating utility corridors.”
The President explained that the funding arrangement involves a $516.33m facility from Deutsche Bank, backed by partial guarantee cover from the insurance arm of the Islamic Development Bank, while the Federal Government will provide counterpart funding of N265.54bn.
The counterpart contribution, he said, would cover land acquisition, compensation payments, and complementary infrastructure requirements.
Tinubu urged lawmakers to expedite legislative approval of the borrowing request in view of the strategic importance of the project to national development.
The Sokoto-Badagry Superhighway was conceived as one of Nigeria’s most expansive road infrastructure projects, intended to serve as an economic backbone linking the resource-rich northern corridor with major export gateways in the south.
Beyond easing transportation challenges, the superhighway is expected to boost agricultural supply chains, enhance regional trade, improve access to seaports, and attract investments in manufacturing, logistics and real estate along its route.
The project also aligns with broader government plans to modernise transport infrastructure and strengthen Nigeria’s competitiveness under the African Continental Free Trade Area framework.
Presenting the report of the House Committee on Aids, Loans and Debt Management, Abdullahi El-Rasheed, who represented the committee chairman, Abubakar Nalaraba, urged lawmakers to support the loan request, citing the project’s strategic economic value.
He said the highway would serve as a critical driver of development and improve long-term economic productivity.
Following deliberations, the House approved the borrowing request at plenary, paving the way for the commencement of the project’s first section.
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