Power Sector Investors Demand Settlement of N50bn Debt to Reflate the Sector
Investors in the nation’s power sector have once again painted a gloomy picture of the power sector as they called for the settlement of N50 billion owed them and the introduction of a realistic tariff structure, reflective of the current rate of inflation and foreign exchange rate.
The Chairman of Transcorp Power Ltd, Mr. Tony Elumelu made the declaration at a two-day interactive dialogue/workshop on the Nigerian power sector, organised by the National Assembly. He said investors in the sector could not be expected to perform miracles, with the N50 billion owed them.
The workshop with the theme, “Nigerian Power Challenge: A Legislative Intervention,” had in attendance Senate President Bukola Saraki, Speaker of the House of Representatives, Hon. Yakubu Dogara, Minister of Power, Works and Housing, Mr. Babatunde Fashola, and other stakeholders.
Elumelu also cited over-regulation by the government as one of the factors impeding growth of the industry.
“The tariff structure has to be cost-reflective for the sector to work, especially as we are not taking into account the rate of inflation and the exchange rate.
“The cost of gas also is there and too much regulation is stifling the take off of the privatisation of the sector. The sector must be allowed to flow freely, like the telecommunications sector did before tariffs began to crash years later,” he said.
“With debts of up to N50 billion, it is unfair to expect that investors will perform miracles. The system must encourage them and we all must be sincere with ourselves,” Elumelu added.