Eko Electricity Distribution Company Plc says the planned N100bn government support for the power sector will go a long way in bettering the fortunes of DisCos, if released.

The power firm, which identified illiquidity as a major challenge facing operators, maintained that there is the need for the support funding as banks have refused to lend to the sector due to its high debt profile. The company made its intentions known when the Senate Committee on Power, Steel Development and Metallurgy visited its headquarters on oversight function in Lagos.

The Managing Director/Chief Executive Officer, EKEDC, Mr Adeoye Fadeyibi, said though the liquidity challenge was grave, the DisCo would continue to work towards delivering on its mandate, as discontinuing business was not an option. The Chairman of the Senate Committee on Power, Steel Development and Metallurgy, Mr. Enyinnaya Abaribe, also admitted that the country’s power sector was in a critical state, and needed serious intervention.

Source: The Guardian