Power firms lament FG’s failure to meet commitments to power sector

Power distribution and generation companies have said the failure of the Federal Government to fulfill its part of the agreements reached during the privatisation of the firms is a major issue affecting the power sector, The Punch reports.

The Chief Executive Officer, Association of Nigerian Electricity Distributors, an umbrella body for the Discos, Mr. Azu Obiaya, said; “There were four key commitments that the government made. The first one was the provision of N100bn in subsidy. The second was the commitment to pay MDA  debts; the third was debt-free balance sheet for the Discos, and the fourth was a provision of cost-reflective tariffs.”

“Unfortunately, at this time, none of those commitments has been met. The issues have been brought up in different fora and in the stakeholders’ meetings that have been held,” he said. According to Obiaya, there is need for the parties to come to a table to dialogue and figure out how to address these issues and other broader issues that exist in the sector.

The Executive Secretary, Association of Power Generation Companies, Dr. Joy Ogaji, described the sanctity of contracts as a major issue, adding that anybody that failed to perform its part should be penalised according to the terms of the contracts. She added that the Federal Government had not completely kept its part of the contracts signed with the private investors. Ogaji called for a review of the agreements “so that everybody will be called to question”.

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