The Senate Committee on Privatisation has committed to addressing the ₦1.6 trillion debt owed to Egbin Power Plc by the Federal Government.
Egbin Power is one of Nigeria’s largest power generation companies.
Recall that In March, the Chief Executive Officer of Egbin Power Plc, Mokhtar Bounour, revealed that the Federal Government owed the GenCo ₦1.4 trillion.
The company informed the Senate Committee on Wednesday that the debt had increased to ₦1.6 trillion due to the government’s failure to settle it.
During a visit to the power plant on Wednesday, the committee praised the management for its resilience in the face of numerous operational challenges.
The Vice Chairman of the Senate Committee on Privatisation and Commercialisation, Senator Emmanuel Udende, recognized the financial strain on Egbin Power and assured the company that the issue would be reviewed once a comprehensive report is submitted.
Udende noted that the committee would assess the debt issue alongside the Nigerian Bulk Electricity Trading Plc and the Bureau of Public Enterprises to explore measures to ease the financial strain.
He stated that the committee’s visit was part of ongoing efforts to evaluate the performance of privatised assets and explore ways to enhance their operations.
“I’m quite impressed with what they (Egbin Power) have done. They are owed a very huge sum of money, N1.6tn, It’s quite huge, and they’re still operating. I like their spirit. I’m quite impressed that this debt is being owed, and yet they are operating. I wonder how. Once we get the full report, we will look at what we can do to ameliorate that situation,” he said.
He noted that the committee could address the situation through either a motion or legislation, assuring the company that the debt issues would be thoroughly considered by involving all relevant parties.
He also pointed out that, beyond the debt, the company continues to face challenges such as vandalism, grid instability, and foreign exchange difficulties.
He also mentioned that an investigation is ongoing to identify the cause of the repeated grid collapses, speculating that sabotage might be involved.
The Chief Executive Officer of Egbin Power, Bounour stressed the need for support, while reaffirming the company’s commitment to maintaining grid stability and contributing to the nation’s economic growth.
“We need support. Generally, the challenges that we have, all GenCos and even DisCos, are common: Access to forex, debt that has to be solved, and grid stability that is impacted by vandalism. Al has to be stopped. Access to gas at the right price, the domestic prices. The gas is produced here in Nigeria. So all these have to be put on the table and we hope that they (the senate committee) can help us in escalating this,” he said.
Meanwhile, the Group Managing Director of Sahara Group, Kola Adesina emphasized the need for a collaborative, community-based dialogue to tackle the recurring grid collapses.
He emphasised that community-based dialogue is crucial because grid collapses are largely caused by vandalism.
“I think there is a need for different communities to hold meetings amongst themselves. Every one of us must sit down and ask ourselves a basic question. Do we truly want Nigeria to grow? If the answer is yes, vandals live among us. When vandals vandalise, they are either using the materials they have stolen for economic purposes or they are doing it for mischief reasons. So, either way, both can’t in any way enable the growth of this nation. As a matter of fact, it makes all of us poorer.
“So“ I think there is a need for a concerted community-based conversation once the security people start to do something in that regard. We need to make it a bottom-up approach,” he said.
He pointed out that the issue is rooted in the value system and must be addressed directly.
Despite the debt owed to the GenCo, Adesina affirmed that the company’s vision of bringing energy to life remains the driving force behind its operations, even amid challenges.
