Nigeria won’t see elecricity until we are paid N1.6 trillion govt is owing us – Gencos

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Power Generation Companies (Gencos) under the auspices of Power Generation Companies (APGC) on Sunday, said that the power supply situation in the country was getting so terrible because they were owed over N1.6 trillion since the past 9 years.

APGC’s Executive Secretary, Dr. Joy Ogaji, while briefing newsmen in Abuja, argued that a situation where the energy dispatched by the power generators was used as an index for power generation capacity was detrimental to their survival.

“We are currently owed N1.644 trillion. One of the reasons that the power plants are down is due to inefficient management of the grid,” Ogaji said.

According to her, the Gencos have exhausted all their borrowing sources, as the Central Bank of Nigeria (CBN) had reportedly warned the banks to desist from lending money to them.

She stated, “If you give us gas, provide forex to carry out maintenance. I have told you most of the units are down and they need money to fix them.

“Give us enough money to pay our gas suppliers because it is pre-payment. But for power, it is ‘take and pay later. There is no way that this misalignment will help us.”

But Ogaji admitted that at the moment, the Gencos were generating an average of 4,000MW.

However, the debt claim by the Gencos was immediately refuted by the Nigerian Bulk Electricity Trading Company (NBET). NBET disputed the figures quoted by the power generators, saying only companies with active gas supply and transportation contracts are paid for unutilised capacity.

The Head, Corporate Communication, NBET, Henrietta Ighomrore, explained that in the country, only five power generation companies with active Gas Purchase Agreement (GPA) were entitled to be paid for unused capacity.

According to her, claims that the Gencos have the capacity to generate 9,000MW are not accurate, as inspections by NBET had shown that the so-called capacity does not exist.

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