Babatunde Fashola, minster of works, power and housing, says the power being generated is higher than the carrying capacity of electricity distribution companies.
Speaking at the 18th monthly power sector stakeholders meeting hosted by Kano electricity distribution company on Monday, Fashola described the situation as a serious challenge to efforts made by the government.
“It is a serious problem that the distribution companies do not have enough carrying capacity to accommodate more of the generated electricity due to one reason or the other.”
The minister also told the gathering that federal government has approved a loan of N39 billion to enable electricity distribution companies (Discos) supply prepaid meters.
He said the gesture is part of the power sector recovery programme aimed at ensuring uninterrupted power generation and distribution.
“It is also aimed at ending the series of complaints by consumers who applied for meter but were not supplied at the appropriate time.”
Fashola said successful implementation of the recovery programme would resolve the conflict between electricity distributors and consumers over tariff collection.
According to the minister, power generation has increased to 6,863 megawatts in 2017.
He attributed the increase to efforts made by the government to end vandalism of gas pipelines.
The federal government had earlier approved a fund of N701 billion to complement the payment deficits made by Discos.
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