Top electricity companies want to cut down the power supply! What is the reason? What waits Nigeria? Will our country live in the dark? Find out all the answers here!
The epileptic power, which is supply in Nigeria, can stop its existing after on Wednesday the nation's biggest electricity companies revealed that they will close the power supply, if the debt of parastatals and government agencies will not pay lingering accounts.
List of electricity companies in Nigeria
Now we talk about several companies. There are six different power generating companies, which are also known as Gencos. They are products of the last Federal Government privatization initiatives. The companies’ representatives said that they are going to shut down the electricity generation as soon as it is needed if 156 billion naira ($485 million) debt owed from authorities’ agency is not paid.
They also added that different commercial banks were already recalling some loans made to them. The Federal Authorities has given receivable 186.7 billion naira, but as of July, generating companies told they received only 28.6 percent of its April invoice. The central bank stepped in a credit of 213 billion naira, to keep the system afloat and allow energy companies access to credit, but they need more, as oil prices landslide pressures naira.
These companies that include Forte Oil’s power unit and Transcorp’s power subsidiary complained that they got no access to gas and also added that companies struggled to fix their networks because import of different spare parts had already become too expensive thanks to huge naira devaluation.
The national currency has lost about 40 percent of its value as in June Nigeria destroyed its 197 naira 16-month-old peg to the dollar.
In February the authorities have decided to increase tariffs by 45 percent, but the different generating companies answered that the tariff reviews can not keep pace with rising cost, which is now worsened by the last court order about the reversing increasing of tariffs. All small scale businesses and potential foreign investors emphasize the nation’s chronic power shortages, naming it ‘one of the greatest constraints’ on country investment and the Africa’s largest economy growth.
President Muhammadu Buhari has already been called to step up his intervention in the difficult power sector in order to improve the country power supply. While producing even less than 4,000 megawatts, the country requires ten times more to guarantee power for about 170 million people.
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