Diamond-BankPower firms must meet their debt obligations to banks or lose out, the Group Managing Director, Diamond Bank Plc, Dr Alex Otti has said.

At a national discourse in Lagos, Otti said the firms were required to pay back debts owed the banks to sustain the relationship.

He said: “In respect of the firms that bided and bought the assets of PHCN, loans given to them must be paid to ensure mutual growth. The story of power supply is all too familiar with current peak time generating capacity of about 4,517 megawatts when there is estimated latent demand of 19,000 to 20,000 megawatts.

‘’We will not mourn a lot about this, but will like to take the discourse to the direction of how our infrastructural deficit can be addressed in an accelerated manner.

“Good enough, a step has been taken in the right direction with the establishment of a Sovereign Wealth Fund of $1billion and a clear mandate to invest part of the money in infrastructural development. We need to take an additional step to ensure sustainability of this initiative by ensuring that the funding mechanism is agreed upon by all parties – Federal, state, and local governments.’’

He said privatisation is good, if it is done properly. Otti said the government invested a lot of money on Ajaokuta and Osogbo Steel Rolling Mills without achieving success. He said most banks engage in oil and gas transactions, without having knowledge of what it entails.


[The Nation]