Power Sector Intervention Now N1.5trn -Osinbajo

  • Power Sector Intervention Now N1.5trn -Osinbajo

Vice President Yemi Osinbajo on Tuesday said despite the privatisation of the power sector, the Federal Government’s intervention in the sector is now N1.5 trillion.

The Vice President, who spoke during a power sector event at Kainji Hydro Power Plant in Niger State, said this means after six years of privatising the power sector, no power distribution company has paid tax.

He said, “The Federal Executive Council recently approved the third round of intervention funding for the (power) sector, with a total of about N1.5tn in the last two years.

“However, if the country is to achieve its aim of channelling funding to other critical sectors of the economy, it is pertinent that structural reforms be put in place to enable the power sector to fund itself sustainably.”

The Vice President was represented by the Minister of Power, Sale Mamman.

Mamman said the Federal Government will continue to support the power sector through interventions and policies to ensure constant power supply across the country.

“These policy reforms must however take into consideration the need for under-privileged Nigerians to gain access to affordable electricity to power their homes and small businesses, as the government seeks to move Nigeria further up the World Bank’s doing business rankings.”

Meanwhile, power generation companies are complaining of low monthly invoice payments, currently 15 percent, down from 80 percent.

Speaking at a round-table conference organised by Mainstream Energy Solutions Limited, concessionaire to Kainji and Jebba hydropower plants, Sani Bello, the Chairman, MESL, said power generation companies can not survive on the 15 percent invoice payments.

Bello said, “I hope the minister will do whatever he can in his capacity to see that our payments are improved. In the last months, between May and June, we only received 15 per cent of our invoices as power generation companies. I do not think we can continue to survive with 15 per cent payments.”

About the Author

Samed Olukoya
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 long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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