Nigeria Might Face Total Blackout as Electricity Company Faces Possible Colapse

Nigerian Bulk Electricity Trading Plc, NBET weekend said it has paid N186.7billion to Electricity Generating Companies, GENCOs saying it is only owing them about N156 billion.

Reacting to the alarm raised by GENCOs that their continued existence is being threatened by huge unpaid debt by various stakeholders and that they are currently running their operations at a huge loss; and are barely struggling to survive, General Manager/Head, Power Procurement and Power Contracts, Nigerian Bulk Electricity Trading Plc, NBET, Longe Yesufu Alonge, said the company has made payment of N186, 556, 636, 647 from February 2015 to April 2016, while the outstanding payment to the GENCOs from February 2015to April 2016 is N155, 768, 549, 056.

The GENCOs in Nigeria are currently running at a terrible loss which has posited an imminent collapse of the power sector in Nigeria.

[pull_quote_center]“Reacting to the same issue, an official of the Central Bank of Nigeria, who does not want his name in print, said that the power intervention fund has terms and conditions attached to it. He said that any GENCOs which meets the terms and conditions of the facility have due access to draw from the fund. He said that some of the GENCOs think that the fund is a national cake to be shared.[/pull_quote_center]

[quote_box_left]The Power Generating Companies weekend said that unless something urgent is done in the next couple of months, Nigeria should be prepared for a total electricity blackout. They said that they are currently running their operations at a huge loss and are barely struggling to survive.[/quote_box_left]

[quote_box_right]the payment performance of NBET from February 2015 to April 2016 is 54.50 percent not the average of 40 per cent being claimed by the GENCOs. He also said that NBET has paid the sum of N21billion from its capitalisation to reduce the debt it owes the GENCOs. He explained that the company has not paid the outstanding due to the challenges in the power sector.[/quote_box_right]

He said that the last draw down from the fund some of the GENCOs did not benefit because they failed to meet the necessary conditions. He equally said that some of the GENCOs just wanted free funds which is not possible anywhere.

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