June 19, 2024

FG’s N2 trillion debts may disrupt power supply

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Adewale Akintaro

In spite of the fact that the country continues to up its quest to rejig the country’s power sector continues, and more frenetic campaigns to utilize the flared gas heightened , electricity consumers may have to brace up for more blackouts in supply as the nonpayment of debts poses major obstacle to the capacity of power generation companies, GENCOs to meet their obligations to the national grid.
The GENCOs which urged the federal government to settle outstanding electricity debts to ensure their continued operation, however, warned that the non-payment of over N2 trillion could jeopardize the sustainability of electricity generation for Nigerians.
Retired Col. Sani Bello, the Board Chairman of Power Generation Companies, made this appeal in Abuja a couple of days ago.
He stated: “GENCOs are constrained to issue this release to draw the attention of the Federal Government and key stakeholders to the need to urgently address the issue of inadequate payment for electricity generated by them and consumed on the national grid, which is currently threatening the continued operation of their power generation plants.
”GENCOs are currently owed more than two trillion naira for power they generated, put into the national grid, and consumed by end users.
”This is in addition to the more than 1.7 trillion naira funding gap created in the recent supplementary Multi Year Tariff Order (MYTO) 2024 without a designated fund to fill the gap.”

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