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Blackout Imminent As GenCos Threaten Shutdown Over N2trn Debt

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Power Generation Companies (GenCos) are urging the Federal Government to address the N2trn electricity debt, emphasizing that 90 percent of their monthly invoices remain unpaid.

They requested that “immediate and expedited action be taken to prevent national security challenges that may result from the failure of the GenCos to sustain steady generation of electricity for Nigerians,” lamenting the fact that the problem is currently jeopardising the continued operation of their power generation plants.

In a statement released on Sunday, Colonel Sani Bello (retd.), the board chairman, stated that the generation companies (GenCos) owe approximately N2 trillion for the electricity they produced, fed into the national grid, and were used by end consumers.

And this is in addition to the over 1.7 trillion naira, funding gap created in the recent supplementary MYTO order 2024 without a designated fund to fill the gap.

The statement read, “Even though the supplementary MYTO order leaves about 90% of GenCos monthly invoices unmet without a bankable securitisation or financing plan, the power generated by GenCos has continued to be consumed in full without corresponding full payment.

“The GenCos therefore called on the Federal Government and key stakeholders to urgently address the issue of inadequate payment for electricity generated by them and consumed on the national grid, insisting that the liquidity challenge threatens the continued operation.

“GenCos are of the position that the liquidity challenge threatening the continued operation of their power generation plants must be addressed urgently, and sustainably too. Besides being owed huge debts, GenCos also are operating under very harsh monetary and fiscal conditions, occasioned by the economic realities that face the country today.”

Continuing, the group said in the statement that, “The flow of money within the power industry is one of the fundamental problems preventing Nigerians from enjoying continued and sustainable improvement in electricity supply.

“Expeditiously solving these issues would enable GenCos to meet their critical needs which would, in turn, ensure that they sustainably generate power, to enable Nigerians to have better access to reliable electricity supply. GenCos would like to re-emphasise that this request requires urgent attention.”

The group stated further, “The power generated by GenCos has continued to be consumed in full without corresponding full payment, notwithstanding the commencement of the Partial Activation of Contracts in the NESI which took effect from July 1, 2022, the minimum remittance order, bilateral market declaration, waterfall arrangement, the risks of inflation, forex volatility with no dedicated window to cushion the effect of the forex impact, the supplementary MYTO order which leaves about 90% of GenCos monthly invoices unmet without a bankable securitisation, or financing plan. This situation has dire consequences for the GenCos and by extension the entire power value chain.”

The group further reaffirmed that “GenCos are currently owed over two trillion Naira for the power they generated, put unto the national grid, and consumed by end users.

“This is in addition to the over 1.7 trillion naira, funding gap created in the recent supplementary MYTO order 2024 without a designated fund to fill the gap. This huge debt outlay is now greatly inhibiting GenCos ability to meet their obligations to lenders, O&M operations, necessary maintenance, spare parts procurements, employee-related obligations etc.

“The GenCos expectations of being settled through external support such as the World Bank PSRO has also been dampened due to other market participants’ inability to meet their respective distribution linked indicators (DLIs), enshrined in the Power Sector Recovery Program (PSRP). Access to forex is another problem given that major operation and maintenance needs in the generation subsector are dollarized, the importance of a specialised window or stable dollar allocation option for the GenCos cannot be overemphasized.”

The statement also quoted the group as saying, “GenCos are of the position that there is a need for a coordinated approach by all stakeholders in the NESI to address the liquidity issue realistically and sustainably in the power sector so that Nigerians can have access to reliable electricity supply.

“In the light of the severity of the issues highlighted above, the GenCos are requesting that immediate and expedited action be taken to prevent national

security challenges that may result from the failure of the GenCos to sustain steady generation of electricity for Nigerians.

“GenCos liquidity challenges are further worsened by the various policies introduced such as the payment waterfall in the NESI, which deprioritizes payment to GenCos”.

BIG STORY

BREAKING: President Tinubu Arrives National Assembly To Present N47.96tn 2025 Budget

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Barring any last-minute twist, President Bola Tinubu has just arrived at the National Assembly Complex with his entourage to present the 2025 budget proposal before a joint session of parliament.

The Federal Executive Council on Monday approved the N47.96tn budget estimate for the 2025 fiscal year.

Consequently, security agents, including operatives of the Department of State Services, the Nigeria Police Force, Nigerian Security and Civil Defence Corps, Sergeant-At-Arms, and the Federal Road Safety Corps, are restricting access to the complex, assuring that only those with legitimate business related to the proposed budget presentation are allowed entry through the gates.

Staff members of the National Assembly providing clerical and other auxiliary services were on Tuesday instructed to remain at home until the President’s visit was over.

 

More to come…

 

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BIG STORY

After Spending Over 14 Yrs In Prison, Governor Adeleke To Pardon Man Sentenced To Death For ‘Stealing Chicken’

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Ademola Adeleke, governor of Osun, is seeking to pardon Segun Olowookere, who was sentenced to death by hanging for allegedly stealing a fowl and eggs in 2010.

In an interview with Biola Adebayo, a Nigerian actress, the parents of the victim claimed that police officers from the Osun command arrested Olowookere for an offence he did not commit.

Olowookere Olanrewaju, the man’s father, said a divisional police officer (DPO) asked him to pay N30,000 for his son’s release, but N20,000 was all he could raise at the time.

“We are here to beg Nigerians to help us. In 2010, I was at the shop where I was renting out cassettes, and at about 11am, some police officers came around,” he said.

“We later found out some students from Segun’s school were in their vehicle and they said they were arrested because of the theft of a chicken and eggs.

“Truth be told, Segun does not eat chicken. Because I trained broilers. He refused to run away, telling us that he didn’t know anything about the theft of the chicken.

“They came back around 9pm in the night and he was eventually arrested. It was when I visited the station that I knew who owned the chicken and eggs. He was just like a brother to me.

“I was told by the DPO in charge to bring N30,000 so my son could be released but after running around, all I could raise was N20,000 which he refused to collect.”

Folashade Olowookere, mother of the victim, said her son, who was 17 at the time of his arrest, has now spent over 14 years in prison since he was sentenced.

In a statement on Wednesday, Adeleke directed the attorney-general and commissioner for justice in Osun to commence a full probe into the matter.

“I have received the report of a case of a young man reportedly sentenced to death by hanging in Osun State for stealing a fowl,” the statement reads.

“Consequently, I have directed the Attorney-General and Commissioner for Justice, Osun State to commence full investigation into the matter and initiate processes to grant the prerogative of mercy to the young man.

“Osun is a land of justice and equity and must ensure fairness and protection of the sanctity of lives.

“I assure members of the public that this matter is receiving my direct attention with every sense of urgency also attached to our response to the matter.”

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BIG STORY

Two LAUTECH Students Win N20m In NOA Campus Debate Competition

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  • Extra N1million from NELFund

 

Two students of the Ladoke Akintola University of Technology (LAUTECH) in Ogbomoso, Oyo State, Adekunle Ayomide and Oladeji Oluwashina, have won the 2024 National Orientation Agency (NOA) campus debate competition.

The competition, organized by the NOA, featured two university representatives from each of the six geopolitical zones, debating the topic “Criticising and dissenting peacefully while maintaining love for one’s country.”

The LAUTECH representatives emerged victorious in the debate, receiving a prize of N20 million.

The students were also awarded an additional N1 million from the Nigerian Education Loan Fund (NELFund).

Ahmadu Bello University in Zaria and the University of Ilorin were the first and second runner-ups, winning N750,000 and N500,000, respectively.

Ignatius Ajuru University of Education in Port Harcourt, Gombe State Polytechnic in Bajoga, and the Institute of Management and Technology in Enugu secured the fourth, fifth, and sixth positions, respectively.

Speaking during the event on Tuesday, Lanre Issa-Onilu, the NOA director-general, stated that the debate aims to engage the youth in governance matters.

Issa-Onilu emphasized that while criticism is essential for nation-building and democracy, it must be constructive to ensure peace and development.

He congratulated the participants for their thoughtful strategies in engaging with the government constructively.

“Constructive criticism is not rebellion; it is a cornerstone of democracy and a vital tool for nation-building,” Issa-Onilu said.

“Patriotism is not silence. Loving your country does not mean turning a blind eye to its shortcomings. It means recognizing those shortcomings, speaking up against them constructively, and working together to find solutions.”

Akintunde Sawyerr, managing director of NELFund, reaffirmed the agency’s commitment to ensuring that Nigerian students have access to quality tertiary education through its education loans.

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