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Sunday, June 16, 2024

Elumelu calls on FG to pay over N2 trillion owed to GenCos

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The Chairman of Translational Group, Transcorp Plc., Tony Elumelu, has called on the Federal Government of Nigeria to pay excess of N2 trillion debt owing power Generating Companies (GenCos).

TREND reports that Elumelu gave the commendation on Monday, at the Annual General Meeting of the company in Abuja, noting that the move would avoid total collapse of the power sector.

Speaking on liquidity challenges in the sector, he said, “The distortion in the liquidity flow in the sector is huge and typified by the debt owed to GenCos by Nigerian Bulk Electricity Trading Plc, currently in excess of N2 trillion. We are owed N250 billion as at March 2024.

“Technically, the GenCos are subsidising the sector by continuing to generate power despite the huge debts owed them.

“This, obviously, has impacted negatively on the ability of the GenCos to pay their gas suppliers, thereby impacting the quantity and reliability of gas supply to the GenCos, as well as investment in generation.

“I therefore welcome recent pronouncements by the Federal Government of Nigeria affirming its commitment towards paying the debt owed to the GenCos.”

 

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