Eunice Imo Kalu
Nwokolo stated this at the Association of Power Generation Companies, APGC, end of year get-together in Abuja.
He explained that with the removal of subsidies on petrol, more money should be disbursed on the power sector to reduce energy cost for Nigerians, noting that constant and reliable electricity supply will help the country’s economy.
He said: “I support the removal of petrol subsidies but there has to be an alternative. Our people in the rural communities, artisans and other small businesses cannot afford to run their businesses with generators again because of the high cost of petrol and diesel.
“Therefore power supply must improve as an alternative energy source. The constant and reliable electricity supply will have a multiplier effect on the economy and the national development.”
Also speaking, Dr Joy Ogaji, CEO Association of Power Generation Companies, APGC, mentioned that the Generation Companies, GenCos, need to re-strategize and position themselves for a sustainable path for 2024.
She said: “As we wind down the year 2023, with a renewed hope for 2024, GenCos need to re-strategize and position themselves for a sustainable path; GenCos must be intentional and focused.
“This is because total debt to total assets at book value influences both the profitability and riskiness of the firm. Profitability is determined by the efficient management of the broader measure of liquidity, working capital, and its narrower measure. The liquidity squeeze on the market and the inability of NBET to handle payments to the GenCos in accordance with the power purchase agreements is something worthy of pondering”.
The Special Adviser to the President on Infrastructure, Sodiq Wanka applauded the GenCos for being the “bright aspect of the power sector”.
While conceding that there are pressing issues that should be tended to, he noted the government was committed to closing the metering gap that would guarantee further developed liquidity for the players.
He said the government would set a power sector working group in 2024 that would help in organizing activities in the sector.
