Govt’s debt to Egbin Power hits N1.6tn, Senate intervenes
The Senate Committee on Privatisation has pledged to address the N1.6tn debt owed to Egbin Power Plc by the Federal Government.
Egbin Power is one of Nigeria’s largest power generation companies.
The PUNCH recalls that in March, Chief Executive Officer of Egbin Power Plc, Mokhtar Bounour, told our correspondent that the Federal Government was owing the GenCo to the tune of N1.4tn.
The company told the senate committee on Wednesday that the debt had risen to N1.6tn due to the failure of the government to offset the debt.
Speaking during a visit to the power plant on Wednesday, the committee commended the management for demonstrating resilience amidst several operational challenges.
The Vice Chairman, Senate Committee on Privatisation and Commercialisation, Sen. Emmanuel Udende, acknowledged the financial burden on Egbin Power, assuring the company that the issue would be examined once a comprehensive report is submitted.
Udende emphasised that the committee will assess the debt situation with the Nigerian Bulk Electricity Trading Plc and the Bureau of Public Enterprises to consider steps needed to ease the burden.
The committee’s visit, he said, was part of efforts to assess the performance of privatised assets and identify ways to strengthen their operations.
“I’m quite impressed with what they (Egbin Power) have done. They are owed a very huge sum of money, N1.6tn, It’s quite huge, and they’re still operating. I like their spirit. I’m quite impressed that this debt is being owed, and yet they are operating. I wonder how. Once we get the full report, we will look at what we can do to ameliorate that situation,” he said.
He noted that the committee could approach the situation through either a motion or legislation, assuring the company that issues about the debt would be considered comprehensively by involving all relevant parties.
He stated that in addition to the debt owed, the company is still battling other challenges such as vandalism, grid inconsistency, and foreign exchange issues.
He added that an investigation is underway to determine the cause of the recurring grid collapses, which he suggested could be due to sabotage.
The Chief Executive Officer of Egbin Power, Bounour maintained that the company requires support while reaffirming its commitment to grid stability and contributing to the growth of the economy.
“We need support. Generally, the challenges that we have, all GenCos and even DisCos, are common: Access to forex, debt that has to be solved, and grid stability that is impacted by vandalism. Al has to be stopped. Access to gas at the right price, the domestic prices. The gas is produced here in Nigeria. So all these have to be put on the table and we hope that they (the senate committee) can help us in escalating this,” he said.
Speaking, the Group Managing Director of Sahara Group, Kola Adesina, stressed the importance of a collaborative, community-based dialogue to address the frequent grid collapses.
He emphasised that community-based dialogue is crucial because grid collapses are largely caused by vandalism.
“I think there is a need for different communities to hold meetings amongst themselves. Every one of us must sit down and ask ourselves a basic question. Do we truly want Nigeria to grow? If the answer is yes, vandals live among us. When vandals vandalise, they are either using the materials they have stolen for economic purposes or they are doing it for mischief reasons. So, either way, both can’t in any way enable the growth of this nation. As a matter of fact, it makes all of us poorer.
So“ I think there is a need for a concerted community-based conversation once the security people start to do something in that regard. We need to make it a bottom-up approach,” he said.
He highlighted that the issue is rooted in the value system and must be tackled head-on.
Despite the debt owed the GenCo, Adesina stated that the company’s vision of bringing energy to life is the driving force behind its operations, even in the face of challenges.
“The key thing that we need as a nation is the fact that without electricity, there cannot be growth nor development,” Adesina submitted.
