Firms Blame Forex Scarcity For Power Problems

The power sector has been finding it difficult to get meters, transformers, transmission sub-stations, gas and other facilities due to forex scarcity.

According to Group Leader, Generation, Sahara Power, Mike Uzoigwe, said GenCos were finding it difficult to break even due to cost of dollar. Sahara Group owns Egbin Power Plant.

The implementation of flexible exchange rate mechanism by the Federal Government last year to enable the firms source for dollars from multiple windows could not help as the companies struggle to get dollars.

Uzoigwe said the price of gas was denominated in dollars, stressing that firms, which hitherto paid N165 per unit of gas, now pay N430 for the same quantity of gas.

Uzoigwe said: “From all indications, it is difficult for the firms to break even, considering the rising cost of dollars. You can imagine million of dollars, which a generation company (GenCo), would pay to buy gas. The astronomical rise in the value of dollar has resulted in a corresponding rise in the cost of spare parts used for our machineries.”

Also, the Chief Executive Officer, Eko Electricity Distribution Company (EKEDC), Oladele Amoda, said forex scarcity was having debilitating effects on the activities of the sector. He said a transformer, which was N2.5million, currently costs N4million due to huge exchange rate.

Busayo Oladejo

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