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  • Business - Economy
  • Updated: May 28, 2024

Elumelu calls for total privatisation of power sector

Elumelu calls for total privatisation of power sector

Tony Elumelu, the Chairman of Translational Group, Transcorp Plc., has called for the total privatisation of the power sector to improve efficiency and innovation in the sector.

Speaking on Monday, at the Annual General Meeting of the company in Abuja, Elumelu also called on the federal government to clear the debts owed Generating Companies, GenCos, to avoid total collapse.

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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