…Says FG’s N1.6tr debt frustrating power generation
Power generation companies in Nigeria (GenCos), have attributed the continued epileptic power supply across the country to illiquidity, caused by the N1.644 trillion owed them by the Nigerian Bulk Electricity Trading Plc, (NBET).
This follows the recent report by the Transmission Company of Nigeria (TCN), ascribing low power generation to the GenCos inability to generate power.
Speaking under the aegis of the Association of Power Generation Companies, (APGC), the association noted that the huge sums owed them has more than ever before continued to frustrate the GenCos and keep them incapable of meeting their obligations which are extremely necessary to keep their power plants running.
The Executive Secretary of the APGC, Joy Ogaji, who addressed newsmen yesterday, said that the amount was as a result of accumulated unused capacity that spread through 2015 to 2022.
According to Ogaji, total debts owed as of 2015 was N214.93 billion, N273.32bn in 2016; N236.47 in 2017, N264.08bn in 2018.
Others include: N256.97bn, N266.01bn and N120.25bn and 12.01 in 2019, 2020, 2021 and January, 2022 respectively.
“Illiquidity, caused by the huge sums owed the GenCos by the Nigerian Bulk Electricity Trading company has more than ever before continued to frustrate and keep them incapable of meeting their obligations, which are deemed extremely necessary to keep their power plants running and make capacities available, while observing required health, safety and environment standards.
She further explained that about 80% of electricity generated in Nigeria comes from gas-fired turbines, adding that GenCos have consistently been dealing with unending gas-related challenges that inhibit optimal generation.
She said that issues of gas volume, gas quality, gas pressure and gas transportation have consistently curtailed capacity-utilisation by the GenCos, thereby affecting generation.
Speaking further, Ogaji said, “Since 2013, when the power sector was partially privatised, till date, weak and inadequate infrastructure (transmission and distribution) have continued to render inconsequential, a significant portion of the generation capacities recovered by GenCos.
“While the owners of the GenCos invested committedly and increased generation capacity up to 13,000MWs across the country, no corresponding investment and improvements were made at the transmission and distribution ends”, she said.
