The presidential approval for the payment of $1.3billion and N1.3trillion power sector debts will attract investments, African Development Bank (AfDB) Vice President, Dr. Kelvin Kariuki, said yesterday.
Minister of Power, Adebayo Adelabu, said the Federal Ministry of Finance had complied with President Bola Ahmed Tinubu’s approval to pay N130billion to gas suppliers from the gas stabilisation fund
Gas suppliers are owed $1.3billion while generating companies are owed N1.3trillion.
Kariuki believes investors will be hugely encouraged by the development.
Also yesterday, Nigerian Electricity Regulatory Commission (NERC) Chairman Sanusi Garba, an engineer, noted that most of the distribution companies (DisCos) are technically insolvent.
He said: “From the distribution sector, which is particularly the aspect that is affecting most of us as consumers, our understanding of the DisCos is that quite a number of them are technically insolvent.
“They have corporate governance issues. Loss levels are high.”
They officials spoke at the eighth African Energy Market Place with the theme: “Towards Nigeria ‘s Sustainable Energy Future: Policy, Regulation and Investment – A Policy Dialogue for the National Integrated Electricity Policy and Strategic Implementation Plan (NIEP-SIP).”
Adelabu explained the payments were for legacy and current debts.
