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Senate Kicks Against Power Sector Bailout Funds

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  • Senate Kicks Against Power Sector Bailout Funds
  • Condemns Skeletal Power Supply

The Nigerian Senate has opposed the endless infusion of bailout Funds into the power sector by the Federal Government.

The displeasure by the Senate came on the heels of a drop of 1,669.6 megawatts of total energy on Nigeria’s power grid in a single day.

This was revealed by the Senate President, Ahmed Lawan, in a meeting with the management team of the Transmission Company of Nigeria (TCN) in his Abuja office.

Information from the System Operator of TCN in Abuja, showed that power production plunged from 4,648.3mw as at August 11, 2019 to an unsubstantial 2,978.7mw, on August 12, the following day.

At the time of filing this report, the data provided by the TCN on power generation on August 12,2019 remains the same.

The Senate in reaction to the deficiency of power supply in the country has disassociated itself from the payment of bailout funds to power companies; especially distribution companies.

Expressing its support for the proposed recapitalization of Distribution Companies, it recommends that the 40% holding of the Federal Government as stipulated in the Power Privatization Act, 2005, be sold to foreign investors with technical knowledge.

The General Manager, Public Affairs, Ndidi Mbah, disclosed that the Senate is also unhappy about the report on Supervisory Control and Data Acquisition contracts, which has turned out a failure on all three occasions that it was awarded.

TCN therefore called for a more meticulous process in awarding projects to contractors to ensure that only capable firms are given the job. Adding that, its Managing Director, Usman Mohammed has already presented a report to the Senate on TCN’s achievement in the last two years and half.

According to Mohammed, achievements by the TCN include; successful execution of Transmission Expansion and Rehabilitation Programme, Stabilized System Frequency, Secured $1.57bn from multi-lateral financing agencies for the execution of specific transmission projects in the country, procurement of a functional Supervisory Control and evacuation of 755 of containers with power equipment from the ports.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.