The Senate Committee on Privatisation has promised to help resolve a staggering debt of 1.6 trillion naira that the Federal Government owes to Egbin Power Plc, one of the biggest electricity generation companies in Nigeria.
Earlier this year, the CEO of Egbin Power, Mokhtar Bounour, mentioned that the government was behind on its payments, with the debt reported at 1.4 trillion naira. However, during a recent meeting with the Senate Committee, it was revealed that the debt had increased to 1.6 trillion naira because the government had not yet paid what it owed.
While visiting the Egbin Power plant on Wednesday, committee members praised the company’s management for their determination to keep things running smoothly, despite facing many challenges. The Vice Chairman of the committee, Senator Emmanuel Udende, acknowledged the heavy financial pressure on Egbin Power and promised to look into the situation thoroughly once a complete report is submitted.
Senator Udende explained that the committee would work with Nigerian Bulk Electricity Trading Plc and the Bureau of Public Enterprises to figure out ways to help alleviate some of the financial stress caused by the debts. He noted how impressed he was that Egbin Power continues to operate while dealing with such a massive debt.
The committee is on a mission to evaluate how privatized assets, like Egbin Power, are performing and to find ways to improve their operations. Senator Udende plans to address the debt issue either through a formal motion or new laws, ensuring that all stakeholders are involved in the discussions.
In addition to the government debt, Egbin Power is also facing other serious problems, like vandalism, irregular power supply, and issues related to foreign currency exchange. There’s an ongoing investigation to understand why the power grid experiences frequent failures, which might be due to sabotage.
CEO Mokhtar Bounour reiterated that Egbin Power needs more support to overcome these challenges. He mentioned that these problems, such as access to foreign currency, payment issues, and stability in the power grid caused by vandalism, are common among all electricity generation and distribution companies in Nigeria. He stressed that solutions must be found urgently, including fair pricing for the gas that the company relies on.
Kola Adesina, the Group Managing Director of Sahara Group, highlighted the need for a community approach to address the problem of grid failures, primarily caused by vandalism. He believes that communities should come together for discussions about these issues because, at the end of the day, vandalism harms everyone and inhibits national growth. He argued that if the people truly want Nigeria to progress, they need to unite against sabotage and destruction.
Despite the enormous debt and ongoing challenges, both Bounour and Adesina remain committed to the vision of providing reliable electricity, which they believe is essential for any country’s development and progress. Adesina emphasized that without electricity, there can be no real growth or advancement in Nigeria.
