Nigeria’s power sector lost a total of N2,016 trillion (about $6.12 billion) in the last four years as a result of distribution and transmission constraints as well as shortage of gas to the generating plants.
The report by ThisDay newspaper on Friday said that the operational records of the sector obtained from the Office of the Nigerian Vice President, Prof. Yemi Osinbajo, that over N2.016 trillion could not be earned by the sector from May 29, 2015 to May 4, 2019, just about 25 days to the May 29 take-off of the second term of the present administration.
The report added that this is coming as the power generation companies (gencos) under the aegis of the Association of Power Generation Companies (APGC), have revealed that some gencos have been forced by the chronic financial challenges of the sector to file force majeure to the Bureau of Public Enterprises (BPE).
In the power sector, a force majeure is filed by companies or operators to free themselves of any legal actions when they are not able to meet their contractual obligations as a result of some natural and unnatural circumstances beyond their control.
But Nigeria’s Minister of Power, Works and Housing, Mr. Babatunde Fashola, l declared recently that the power sector had fared well since May 29, 2015.
However, Osinbajo said in his presidential speech at this year’s Workers’ Day last Wednesday that despite years of its privatisation, the power sector had remained handicapped in the delivery of required services to various homes and businesses.
GIK/APA