FG, investors working to resolve power sector challenges – Suswan

By Obas Esiedesa

The Chairman, Senate Committee on Power, Sen Gabriel Suswan has said Federal Government has no intention of reversing the power sector privatization which took place November 30, 2013.

Suswan said rather the government is working with the investors to resolve the challenges faced by the sector.

He noted that reversing the privatization process would destroy the economy and create issues of trust for the country in the international community.

He stated this in Abuja on Monday during an oversight visit to two non-core power assets belonging to Nigeria Electricity Liability Management Company Limited but occupied by the Abuja Electricity Distribution Company (AEDC).

He explained that at the essence of the privatization in 2013 was to create efficiency but unfortunately some of the parameters used were “a bit faulty”.

Explaining the visit to the facilities, he said: “We are here to oversight what we have been told by NELMCO. They told us that some assets were handed over to them when the company was incorporated and we need to be sure they are telling us the correct thing.

“Here is the asset of government that was handed over to NELMCO and we want to be sure that the asset is here more so that it is been occupied by AEDC which is a private company”.

He said the Committee has been told that the AEDC are supposed to be paying rent and since the asset is due for sale, the company has the right of first refusal.

Speaking to journalists after the visit, the CEO of AEDC, Engr. Earnest Mupwaya said the company is interested in acquiring the assets and admitted that the utility was yet to pay rent on the two facilities.

He said the company was in discussion with NELMCO on how to off-set the rent which has accrued from December 2013. He said the rent was about N40 million monthly.

On his part, NELMCO Managing Director, Adebayo Fagbemi said the company was looking to sell off 216 assets in three phases with the proceeds used to settle some of the liabilities in the sector.

He said: “The first phase of assets that we are bring out for sale are 52 in number, there is another second batch that we are working on now of about 106 and there will be a third batch of about 58”.

Fagbami said most of the facilities are non-core assets in the power sector which includes buildings, lands, jetties, golf course, and guest houses.