02 November 2016, Sweetcrude, Lagos — The Eko Electricity Distribution Company Plc, EKEDC on Wednesday said that it has spent over N1.44 billion on projects expansion to boost electricity supply to customers in the last three years.
The EKEDC Chief Executive Officer, Mr. Oladele Amoda disclosed this during the news conference in Lagos to marked three-year post-privatisation of handing over distribution companies to private.
Amoda said that the company had embarked on massive rehabilitation and reinforcement of dilapidation of its network, adding that over 400 transformers have been installed in various locations to reduce load shedding of supply.
“Over N1.44 billion had been spent on various projects expansion within the company to boost electricity supply to customers in the last three years,’’ he said.
He said that the company also constructed five new injector substations within its network to beef up supply to major areas of the state which is expected to be completed in the third quarter of 2017.
According to him, “We have commenced construction of five 33/11KVA injection substations in Surulere, Ikoyi and Ajah axis which cost the company over N1 billion. EKO disco had made a modest improvement in electricity supply in the last three years of post-privatisation but still confronted with little challenges.”
The EKEDCP boss said that over N 53 billion would be required for effective metering of customers within its network adding that over N 5 billion has been spent on metering of maximum demand and non-maximum demand customers to date.
He explained that said that about 6,000 meters had been penciled down for roll-out to different customers, while over 67,000 had been installed out of 187 meters delivered by the manufacturer.
Commenting on the challenges faced by the company Amoda said that energy theft and vandalisation of equipment posed serious challenged to the company, noting that billions of naira have been spent on replaced vandalised equipment.
“The money that was meant for expansion and development of the network was been used to replaced vandalised equipment, which posed a serious concern to the company,” he said.
In addition to vandalism, Amoda said the company had liquidity challenges which stood at N900 billion gap due to a high rate of foreign exchange noting government policies on foreign exchange made international lenders skeptical on giving loans to power industry in the country.
As at July 2016, EKEDC CEO revealed that Federal Government Ministries, Department, and Agencies, MDAs are indebted to the company of over N11 billion.