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.
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