11 Electricity Distribution Companies Owe Nigerian Government N1.4 Trillion –Consumers’ Protection Network | Sahara Reporters

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The Nigerian Electricity Consumers' Protection Network has revealed that the 11 distribution companies that invested in the power sector in 2013 still have an outstanding N1.4 trillion to pay to the federal government as proceeds of privatisation, about 10 years after the exercise.

President of the group, Kunle Kola Olubiyi explained that the amount electricity consumers owed the Power Holding Company of Nigeria, PHCN as at the time of privatisation was N1.8 trillion. He said the electricity distribution companies paid only N400 billion to the government as proceeds of the privatisation.

“They did not have their resources. Money that the federal government realised from the power sector privatisation, put together was N400 billion. And it went into payment of packages and allowances to former PHCN workers. So as a federation, nothing was put into the federation account as proceeds from the power privatisation.”

“However, although BPE and NERC are federal government agencies, they are not the same as the federal government or the Presidency. He also explained that if there are no interventions in the bad debts the DisCos owed the banks, it may lead to systemic failure and lack of confidence in the banks. Olubiyi said, “There were people who came on board in October - November 2013, and Nigerians felt that we needed to have a paradigm shift against public funding in the power sector, as what was obtained in the Telecom sector. So, we decided to privatise but where we got it wrong was that most of those that bided for the power assets were predetermined. So, the standards for the process were lowered to accommodate certain interests.

 

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