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Market Digest Nigeria

Economy

NERC approves N215Bn for upgrade

NERC approves N215 billion for Ikeja and Eko DisCo upgrade.

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The NERC said the approved upgrades would improve the distribution of power supply by the DisCos.

The Nigerian Electricity Regulatory Commission (NERC) announced it has approved the sum of N121.92 billion for Ikeja Electric Plc infrastructure upgrade for the next 5 years and also N93.76 billion for Eko Electricity Distribution Company (EKEDC) infrastructure upgrades within the same period.

The NERC disclosed this in its Performance Improvement Plan (PIP) and Extraordinary Tariff Review Application which was released on Monday and signed by  NERC’s Chairman, Mr Sanusi Garba and Mr Dafe Akpeneye, Commissioner, Legal, Licensing and Compliance.

PIP and Capital Expenditure (CAPEX) programme is expected to take effect from July 1, 2021 to June 30, 2026.

The NERC said the approved upgrades would improve the distribution of power supply by the DisCos citing public hearing scrutiny in its PIP and Extraordinary tariff review applications in a bid to ensure accountability.

The approved CAPEX for Ikeja Electric Plc would be N24.38 billion annually from 2021 to 2026, while for Eko Electricity, it would be  N18.75 billion for the same period, totalling N93.76 billion.

The upgrades would be in the areas of existing network capacity, technological enhancements to reduce outages and acquisition of tools to improve network performance.

What you should know

Recall Nairametrics reported that a new Extraordinary Tariff Review Applications, 5-year Performance Improvement Plan (PIP) and Capital Expenditure, CAPEX, for the Electricity Distribution Companies (DisCos) was approved by the NERC.

For the Abuja Electricity Distribution Company, AEDC, the company proposed to undertake numerous interventions to improve service delivery to customers. Over the next five years, the proposed interventions will allow AEDC to achieve substantial improvement in service delivery and increase the number of new customers from the current level of 1,214,259 to 3,450,695.

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