Reports emanating earlier today indicated that the Minister of Power, Engineer Saleh Mamman, threatened that the Discos shall be replaced by Siemens under the proposal they have submitted to the Federal Executive Council.

Engr. Saleh Mamma made the statement while addressing the Federalbum Executive Council meeting this morning, Wednesday 20th February, 2020. The FEC was chairedited by President Muhammadu Buhari.

However, apparently responding to the uproar from the industry stakeholders and experts, on the negative effect it will have on the sector, the Special Adviser on Media and Communications to the Minister, Aaron Artimas, clarifies the position, saying “Nobody is talking of removing the DisCos but there are real concerns about their inefficiency which is impacting on the government. What can we do if they don’t meet expectations?”

The full media statement reads:

It has become necessary to put the records straight on the minister’s briefing after the Federal Executive Council meeting on Wednesday 19th February,2020.

Contrary to what is being reported , the minister did not say the Federal Government has submitted a proposal to the council seeking to handover electricity distribution to Siemens as that is not part of the agreement signed between the German Company and the Federal Government of Nigeria.
The Hon Minister said,

“So, we have submitted our proposal to the government on the problem of distribution and it is left to them to decide what to do. The other thing I can tell you is that the government only signed a memorandum of understanding with the German company, Siemens, on how to leverage generation with transmission and distribution”.

The Minister explained that the government was concerned about the disproportion of the value chain and how to align this chain for optimum distribution of Power.

“For instance, if we generate 13,000 megawatts, we should be able to transmit the whole 13,000 and distribute same, that way, Nigerians will be happy and everyone will have 24/7 of electricity.
The minister expressed regret that even when the discos receive 3,000 megawatts, they shortchange the system by paying for only 1,000 megawatts, adding that the federal government could no longer continue to subsidise their inefficiency.

Aaron Artimas
SA Media and Communication,HMP

Please find attached the Video of the report Engr. Saleh Mamman gave at the Federal Executive Council meeting, as reported by Nigeria Television Authority.