GenCos Owe Banks N356bn- Avuru
Electricity generation companies currently owe Deposit Money Banks a total of N356bn, while the power sector lost over N500bn revenue in 2016 alone. Mr. Austin Avuru of Seplat Petroleum Development Company in a research says the gap in revenue is as a result of an infrastructural deficit in both generation and transmission of power and the ineffectiveness of NERC.
On the liquidity gap in the sector, Avuru stated that findings showed that the failure to constitute the board of the Nigerian Electricity Regulatory Commission for a period of 18 months also contributed the financial mess being witnessed in the industry at present.
Fashola Urges States to Pay their Electricity Debts
During the 3rd National Council on Power (NACOP) held at the Crest Hotel in Jos on Thursday. The Minister of Power, Works & Housing, Mr. Babatunde Fashola has urged the state governments to set up audit teams to verify about N63 billion electricity debts owed by them and their local governments. He said
“The estimated debts owed by the ministries, departments, and agencies to Discos is to be about N90 billion as claimed by the Discos, and only about N27 billion of that debt has been verified being owed by the Federal Government, the rest (about N63bn) was owed by the either states or local governments.”
He asked the State and Local Government to ascertain the quantum of those debts and develop payment plans which can then be budgeted over time.