Nigeria’s power industry saw a rise in liquidity from N282 billion in 2015 to N900 billion as of Thursday. The Federal Government also reported that the industry’s financial burden had decreased by around N373 billion.
The Punch revealed that this information was revealed during the Ministerial Retreat on the Integrated National Electricity Policy and Strategic Implementation Policy by the Nigerian Electricity Regulatory Commission.
The efficiency or convenience with which a security or asset can be turned into quick cash without negatively impacting its market price is referred to as liquidity. Cash alone is the most liquid asset.
The NERC Chairman, Sanusi Garba, stated during a presentation at the occasion that the market’s liquidity had increased from N282 billion in 2015 to N900 billion currently. Additionally, we have also created a mechanism for enforcing payment discipline in the industry. This has seen Disco revenue improve greatly.
“By 2022, we will have reduced the government’s fiscal burden from N528 billion to N155 billion. In the absence of our initiatives, the subsidy would have been close to N665 billion.”
Minister of Power, Adebayo Adelabu, urged industry players and agencies to collaborate with the government during a speech outside the summit’s closing ceremony, emphasizing that those who don’t meet expectations will be escorted out.
“I urge the agencies and public employees who work with me to stand with us so that we can fulfil our commitments and don’t let the President down. And we’re employing a carrot-and-stick strategy, in my opinion. Right now, we’re leveraging the carrot by making an appeal to ourselves.
“In the event that this fails, the huge stick will be used. Of course, a lot of people will leave before me and show me the way out. Thus, this summit is merely a means of getting ready to fulfil the mission and goal of the Power Ministry,” he said.
