“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.”
Browsing: Power Assurance Guarantee
“The N701 billion fund approved by the Federal Executive Council (FEC) is necessary but not sufficient intervention for resolving the liquidity challenge in the power sector. Other regulatory interventions would be enforced by the regulatory commission,” he said.
The minister stated: “So, going forward, in order to strengthen NBET, CBN is proving a payment assurance guarantee for any energy produced by any Genco so that they can pay their gas suppliers when they get paid so that the hydros can continue to operate.