A whopping N330 billion is needed to offset to the Power Holding Company of Nigeria, PHCN, creditors before privatization can take place. This was revealed by the Managing Director of the Nigeria Electricity Liability Management Ltd, NELMCO, Dr Sam Agbogun.
Agbogun said the company needed more than N330 billion to settle creditors of PHCN before a smooth and full privatization could take place. According to him, “majority of the debts owed by PHCN are with the Independent Power Producers, IPPs, who are generating power now and PHCN cannot pay them because of the low tariff it is charging. So, everyday as power is being consumed, we owe the power producers more”.
He also pointed out that some power stations, such as Kainji and Jebba were built with foreign loans, noting that the loans had not been fully paid, hence NELMCO would allow DMO to clear up such debts. He listed the debts/liabilities owed by PHCN to include PHCN’s pensioners, IPPs, financial institutions and other creditors, foreign and local, who had supplied PHCN with materials or services for their functions but are yet to be paid.