Connect with us

News

Blackout Looms As GenCos Threaten Shutdown Over N2trn Debt

Published

on

Power Generation Companies (GenCos) are urging the Federal Government to address the N2trn electricity debt, emphasizing that 90 per cent of their monthly invoices remain unpaid.

They lamented that the issue is currently endangering the continued operation of their power generation plants hence requesting that “immediate and expedited action be taken to prevent national security challenges that may result from the failure of the GenCos to sustain steady generation of electricity for Nigerians.”

Advertisement

According to a statement signed by its Board Chairman on Sunday, Colonel Sani Bello (retd.), the GenCos are currently owed over N2 trillion for the power they generated, put into the national grid, and consumed by end users.

And this is in addition to the over 1.7 trillion naira, funding gap created in the recent supplementary MYTO order 2024 without a designated fund to fill the gap.

The statement read, “Even though the supplementary MYTO order leaves about 90% of GenCos monthly invoices unmet without a bankable securitisation or financing plan, the power generated by GenCos has continued to be consumed in full without corresponding full payment.

Advertisement

READ ALSO: JUST IN: Flights Threatened As Nigerian Aviation Unions Join Strike

“The GenCos therefore called on the Federal Government and key stakeholders to urgently address the issue of inadequate payment for electricity generated by them and consumed on the national grid, insisting that the liquidity challenge threatens the continued operation.

“GenCos are of the position that the liquidity challenge threatening the continued operation of their power generation plants must be addressed urgently, and sustainably too. Besides being owed huge debts, GenCos also are operating under very harsh monetary and fiscal conditions, occasioned by the economic realities that face the country today.”

Advertisement

Continuing, the group said in the statement that, “The flow of money within the power industry is one of the fundamental problems preventing Nigerians from enjoying continued and sustainable improvement in electricity supply.

“Expeditiously solving these issues would enable GenCos to meet their critical needs which would, in turn, ensure that they sustainably generate power, to enable Nigerians to have better access to reliable electricity supply. GenCos would like to re-emphasise that this request requires urgent attention.”

READ ALSO: Nigerian Arrested For Overstaying Visa In Thailand

Advertisement

The group stated further, “The power generated by GenCos has continued to be consumed in full without corresponding full payment, notwithstanding the commencement of the Partial Activation of Contracts in the NESI which took effect from July 1, 2022, the minimum remittance order, bilateral market declaration, waterfall arrangement, the risks of inflation, forex volatility with no dedicated window to cushion the effect of the forex impact, the supplementary MYTO order which leaves about 90% of GenCos monthly invoices unmet without a bankable securitisation, or financing plan. This situation has dire consequences for the GenCos and by extension the entire power value chain.”

The group further reaffirmed that “GenCos are currently owed over two trillion Naira for the power they generated, put unto the national grid, and consumed by end users.

“This is in addition to the over 1.7 trillion naira, funding gap created in the recent supplementary MYTO order 2024 without a designated fund to fill the gap. This huge debt outlay is now greatly inhibiting GenCos ability to meet their obligations to lenders, O&M operations, necessary maintenance, spare parts procurements, employee-related obligations etc.

Advertisement

READ ALSO: Nigeria Volatile, Filled With Suffering – Obasanjo Laments 

“The GenCos expectations of being settled through external support such as the World Bank PSRO has also been dampened due to other market participants’ inability to meet their respective distribution linked indicators (DLIs), enshrined in the Power Sector Recovery Program (PSRP). Access to forex is another problem given that major operation and maintenance needs in the generation subsector are dollarized, the importance of a specialised window or stable dollar allocation option for the GenCos cannot be overemphasized.”

The statement also quoted the group as saying, “GenCos are of the position that there is a need for a coordinated approach by all stakeholders in the NESI to address the liquidity issue realistically and sustainably in the power sector so that Nigerians can have access to reliable electricity supply.

Advertisement

“In the light of the severity of the issues highlighted above, the GenCos are
requesting that immediate and expedited action be taken to prevent national
security challenges that may result from the failure of the GenCos to sustain steady generation of electricity for Nigerians.

“GenCos liquidity challenges are further worsened by the various policies introduced such as the payment waterfall in the NESI, which deprioritizes payment to GenCos”.

Advertisement

News

Sanwo-Olu makes U-turn, Unblocks Lawyer Who Sued Him Over Blocking On X

Published

on

Lagos State Governor, Babajide Sanwo-Olu, has unblocked human rights lawyer, Festus Ogun, on X after a meeting with him at Lagos House, Marina, on Friday.

The lawyer, who had accused the governor of rights violations, announced the development in a post on his X account on Saturday.

Advertisement

According to him, Sanwo-Olu personally invited him for a brief meeting to address his complaints.

Lagos Governor Babajide Sanwo-Olu has unblocked me on X (Twitter). I met briefly with him yesterday at Lagos House Marina, on his invitation, to amicably resolve my complaint of human rights violations. We will continue to hold authorities accountable, regardless. Aluta continua!” Ogun wrote.

READ ALSO:Lawyer Sues Sanwo-Olu For Blocking Him On X

Advertisement

Tribune Online reports that Ogun had earlier filed a suit against Sanwo-Olu at a Federal High Court in Lagos, accusing him of violating his fundamental rights by blocking him on his verified X account.

In the suit marked FHC/L/CS/1739/25, which he shared on Facebook, the lawyer claimed the governor blocked him over his 2021 “constructive criticisms” and “demand for accountability” on the October 2020 #EndSARS killings.

In 2021, I noticed that the Governor blocked me on his official X handle @jidesanwoolu owing to my constructive criticisms of his policies and demand for accountability in respect of the October 2020 #EndSARS Massacre.”

Advertisement

READ ALSO:‘Court Of Corruption’ — Obasanjo Knocks INEC Chairman, Judiciary In New Book

Ogun said the action has prevented him from accessing vital government updates and information.

“Blocking me on X has prevented me from accessing public updates and receiving information about policies and governance in Lagos, which constitutes a violation of my right to receive information without interference,” he said.

Advertisement

In his originating summons, he asked the court to declare the move unconstitutional, arbitrary, and discriminatory.

 

Advertisement
Continue Reading

News

Tragedy Deepens As Prime Suspect in Taraba Student’s Death Found Dead

Published

on

The investigation into the death of Comfort Jimtop, a 100-level Mass Communication student at Taraba State University, has taken a dramatic turn following the discovery of the lifeless body of Emmanuel Kefas, the prime suspect in the case.

Kefas’s body was discovered on Friday in the Tudiri community, Ardo-Kola Local Government Area, under unclear circumstances, intensifying public concern and adding a tragic dimension to a case that has already gripped the university community and residents across Taraba State.

Advertisement

Confirming the development on Saturday, the spokesperson for the Taraba State Police Command, James Lashen, said the police received a report from the village head of Tudiri about the discovery.

READ ALSO:Army Kills Notorious Bandit, Babangida, In Kogi

A lifeless body was found in Tudiri, and a Tecno Android phone was recovered beside it,” Lashen stated.

Advertisement

Upon charging the phone, investigators found a photograph showing the deceased with the late Comfort Jimtop, suggesting they were in a romantic relationship.”

Lashen added that the body has been taken to the Federal Medical Centre (FMC) in Jalingo for autopsy. At the same time, efforts are ongoing to officially identify the remains through the suspect’s family.

READ ALSO:Four Feared Killed As Gunmen Attack Burial Ceremony In Anambra

Advertisement

Police have yet to determine whether Kefas’s death was the result of suicide, homicide, or an accident. Investigations into both deaths are continuing.

Comfort Jimtop’s mysterious death had earlier sparked outrage on campus and across the state, with students and rights groups demanding justice. Kefas was named a prime suspect in the case, which remains open.

This latest development has left many unanswered questions and deepened the grief surrounding the case.

Advertisement

Students, residents, and civil society groups are closely monitoring the situation, calling on authorities to ensure a thorough investigation and bring clarity to the tragic chain of events.

Advertisement
Continue Reading

News

Ossiomo, Chinese Impasse: This Is Our Story — Management

Published

on

The management of Ossiomo Power Plant has cleared the air on the dispute between its Chinese partners and the circumstances surrounding the shutting down of the power plant early this month.

Representative of Ossiomo management, Engineer Festus Evbuomwan, during an interactive session with customers on the impasse between the two partners, said contrary to the rumour making the rounds, the management of Ossiomo Power Plant had paid over ₦2bn to its Chinese partner — Jiangsu Communication Clean Energy Technology (CCETC) — since the power plant started operation.

Advertisement

Recall that representative of CCETC who identified himself as Mr. ‘W’ had, during a telephone phone interview two weeks ago, claimed that “instruction to shutdown was because we lost lots of money and did not get any return on investment,” adding that “all the $20m investment was done by us including the distribution lines.”

But Evbuomwan during the interactive session, said the management was not aware of the $20m investment the Chinese partner claimed, just as he disclosed that “when they generate power, we sell and pay them.”

READ ALSO:Edo Govt Denies Shares As Ownership Tussle Rocks Ossiomo Power

Advertisement

He disclosed that after shutting down the power plant, the Chinese partners came up with a request of ₦185m to be paid to two Chinese not known to the management, stressing that this was declined.

According to him, the Chinese partner, having seen how lucrative the business is, “went to some quarters and raised some issues probably thinking they can manoeuvre us with the help of some big persons, so that they can use their machines to generate power and sideline us but this is not possible.”

The Chinese partners also claimed that they borrowed $20m from their native land to invest, we are not aware of such investment, and we do not know where the money was invested up till now.

Advertisement

“They have been also saying they have not been receiving anything, but I want to tell you unequivocally that first, the partners run a joint account where their investment is going into. More so, The Chinese partners have received over ₦2bn so far for the power they generate with their machines. When they generate the power, we sell and pay them.”

READ ALSO: Five Years After, Edo Govt Reconnects To BEDC As Ossiomo Shut Down

Engr. Evbuomwan, while apologising to customers for the power outage caused by the dispute between the two partners, said Ossiomo had started power generation though not in full capacity, assuring that power generation would be fully restored soon.

Advertisement

“We have purchased turbines, and one have started working. They are working on the second one, so, by the time our five turbines start working we will be in full capacity. Even with that, those connected to the government may not be reached immediately. This is because the government bought the poles and contracted the wiring, and we cannot force the government to do our bid. Also, we are making efforts to site 33kva transformer along Airport Road and Lagos Road as soon as possible, so that our customers there will get power.”

He said the Edo State government does not have a stake in the company, just as he appealed to the “government to let us supply power to customers in through their Lines. I want to emphasise that Ossiomo is not completely shut down.”

He further urged the “government to encourage the Nigerian citizens to invest and not to work against local investors.”

Advertisement

Continue Reading

Trending