‘FG’s electricity debt will rise to N8.8trn by December’
The Association of Power Generation Companies (APGC) has stated that electricity debt owed by the federal government would increase to N8.5trn by December if no concrete payment plan is made by the end of the year. Speaking during an interview on Trust TV, the Chief Executive Officer of APGC, Dr Joy Ogaji, said the government’s […]
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The Association of Power Generation Companies (APGC) has stated that electricity debt owed by the federal government would increase to N8.5trn by December if no concrete payment plan is made by the end of the year.
Speaking during an interview on Trust TV, the Chief Executive Officer of APGC, Dr Joy Ogaji, said the government’s commitment to the sector in form of subsidy is N250 billion monthly and N2.5 trillion annually.
She however said from this, the government is making available only 35 per cent of its payment. “One of the issues we are facing is liquidity and debt.
“Its implication on our operations is that the debt profile runs to N2.4trn annually and as of this moment, there is no clear financing plan other than projections and conjectures and assumptions. So, assumptions cannot buy gas for us to generate.”
“The government is currently owing us a debt of N6.5 trillion with a plan of only N500bn as a bond to pay, with no clear financing plan for the remainder, not to talk of the accumulating one. If we look at the growing debts, it’s around N2.4trn per annum. Last year it was N2.4trn and if nothing is done, it is going to be N2.4trillion this year, this will be N4.8trillionn when you add it to the one of December 2024 that is already N4trn, for which we had a meeting with the President in July. He promised to give the N4trn bond but then we started hearing stories that touched. So, if nothing is done, by December this year, we’re looking at 8.8 trillion.”
She said assumptions have been what the government has been giving to the GenCos which she said cannot provide the dollarised operational maintenance cost and buy spare parts.
“I must inform you that over 90% of power generation operations are dollarised. And we all know how difficult it is to access dollars. Dollars are not made available to the power sector to access officially. So, we have two problems here. One, we are not paid, even the 35 percent they are paying, it comes whenever. So, you cannot even plan with it and it is so inadequate.”