Electricity generation companies have warned that Nigeria’s power plants are facing the risk of collapse as mounting unpaid debts continue to cripple their operations, with gas suppliers increasingly cutting off fuel supplies to indebted generation companies.
The Association of Power Generation Companies said the worsening liquidity crisis in the Nigerian Electricity Supply Industry had left several generation companies struggling to remain operational, warning that the country’s electricity supply could deteriorate further if the Federal Government failed to address the sector’s financial challenges through sustainable reforms.
The Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, disclosed this in an interview with The PUNCH while reacting to the Federal Government’s plan to raise another N729bn through a second bond issuance under the Presidential Power Sector Debt Reduction Programme.
The Federal Government recently concluded an investors’ forum ahead of the proposed bond issuance, which is expected to settle part of the N4tn owed to electricity generation companies. The bond forms part of the Presidential Power Sector Debt Reduction Programme aimed at restoring liquidity in the power sector.
