The Managing Director of the Kano Electricity Distribution company, KEDCO, Dr.Jamil Gwanna has commended the on-going privatization of public holdings in Nigeria, especially the power sector, saying it engenders development and a panacea to corruption.
Gwanna, made the remark while interacting with members of the House Committee on Privatization and Commercialization at the KEDCO Head office in Kano state north western Nigeria.
He said the measure blocks leakages, as well minimize corrupt tendencies.
“Through privatization there will be no public money for looters to loot because the investment comes from the private sector and it is strictly monitored there by enhancing development,” the MD/CEO explained.
Kano is the second biggest commercial city in Nigeria as well as the most populous state.
He however, decried the attempt by the Federal Government to appoint more than one director into the board of the distribution companies as that negates the initial agreement or the law.
“There are procedures for doing this thing; …you cannot just begin to appoint more members into the board at will,” cautioned Gwanna
He said apart from the initial investment, the Federal government no longer injects money into the Discos.
“The federal government has a non-financial 40 percent share, while the Discos have 60 percent and they are the ones financing everything,” he stressed.
He enumerated challenges facing Kedco to include: financing shortfalls, non-payment of electricity bills by Government and its agencies and inherited dilapidated infrastructure among others
“The company has invested over N8 billion within four years, without tallying, with its revenue generation, despite distributing 4,830 MW of electricity to its numerous customers in Kano Jigawa and Katsina States,” he lamented.
He prayed, the committee and other relevant agencies to help in finding solution to the liquidity problems being faced by the disco, resetting the industry to its original privatization document, come up with a working regulation on tariff setting, enforcement of market rules and above all help in tackling the challenges of energy theft.
Vice Chairman House Committee on Privatization and Commercialization, Hon Shodimu Mitiu, said their mission was to interact with Kedco, know challenges being faced by them and proffer solutions.
“We now know your challenges because of the interaction which includes facilities, tariff, and other related issues, We will try our best for the sake Nigerians as well as the interest of the company,” he stated
The committee inspected the burnt 150 MVA transformer at the Kumbotso transmission station where they promised to expedite action for it to be replaced soonest. Similarly, the new 60 MVA transformer being installed by the Transmission company of Nigeria at Danagundi substation which is to become operational in the next two weeks was inspected..
The development according to Kedco management will enable organization to utilize its installed distribution capacity to the 505 registered customers, even as it works towards reaching the over19 million customer base in Kano, Jigawa and Katsina state.