The Federal Government has settled the power Generation Companies, GENCOS to the tune of approximately 3.5 trillion naira from the total invoices of 4 trillion naira issued by the electricity generators.
The Nigerian Bulk Electricity Trading Company, NBET, a Special Purpose Vehicle, SPV set up by the Federal Government to act as intermediate between power generators and distributors, noted that the amount represents close to 90 per cent of the total indebtedness.
NBET Managing Director Nnaemeka Ewelukwa explained that with that amount, the federal government has shown commitment to keeping the sector afloat despite the challenges of funding. He noted that although most of the funding is not directly from the government, as an intermediary, the company collects market remittances for onward payment to the GENCOS.
But the new figure runs contrary to the position of the Association of Power Generation Companies, APGC, aegis body of the Gencos, which during the week stated that the power supply situation in the country was worsening because the generation companies were being owed over 1.6 trillion naira.
Executive Secretary APGC Joy Ogaji however argued that a situation where the energy dispatched by the power generators is used as an index for power generation capacity was detrimental to the Gencos’ survival.
