OpeOluwani Akintayo Lagos — Several projects in Nigeria’s oil and gas sector have been earmarked to come on stream as President Buhari begins another fresh term in office. While some of the projects have been in the pipeline even before his first term, others were inked during his administration, and are expected to come up
“Guarantees by themselves do not constitute a risk. However, where guarantees are expected to be the primary means of ensuring ongoing contractual payments, they constitute a huge risk to the fiscal sustainability of the federal government.”
He said, “We hope to break ground this year if we can conclude the financing. Contracts are in place. We are good to go.”
They stated that the plant would commence commercial operations in 2021, in addition to unlocking investments in power transmission infrastructure.
04 September 2017, Lagos – Egbin power plant, Nigeria’s biggest electricity generating station, is being owed N125bn ($352m) by the…
“The fact remains, if government wants the power sector to succeed, payments have to be made. If the Gencos don’t get enough fund to pay for gas, generation of electricity will crash.”
It was gathered that the shortfall in remittances by the 11 Discos to the MO had been accumulating since the commencement of the Transitional Electricity Market (TEM) in January 2015.
Although, the Central Bank of Nigeria (CBN) provided a N701 billion facility, to assist NBET in meeting its payment obligations from the generation invoices to ease the liquidity challenges, the Gencos are yet to get full payment of all the outstanding debts.
The eligible customer directive is yet to commence as she said the Nigerian Electricity Regulatory Commission (NERC) is working on the framework that that will address registration process, tariff setting among others.
Fashola, who was visibly angry with the recent statements of the Discos, declared that the power firms had failed in many aspects and bluntly stated that complaints of obsolete infrastructure in the sector as alleged by the companies were unnecessary because they were aware of the state of these facilities when they purchased the assets.
