By Chris Ochayi
ABUJA: Minister of Power, Works and Housing, Babatunde Raji Fashola, has expressed optimism that the N702 billion recently injected into the power sector by the Federal Government would tackle liquidity challenges being faced by the Generation Companies, GENCOs.
Fashola explained that part of the liquidity problems facing the GENCOs was the inability to pay gas suppliers.
The minister stated further that Nigeria Bulk Electricity Trading, NBET, would pay GENCOs for electricity generated as a deliberate step to improve their confidence and that of intending investors in the sector.
According to him, ‘‘the plan will not immediately solve the problems of the power sector or produce overnight the electricity that has eluded us for decades, but will bring some stability to the production side of the power value chain and also give confidence to investors who want to come in and who are concerned about how to recover their money.’’
Fashola said that subsequent complimentary interventions will ultimately seek to strengthen financial transparency to ensure that industry revenues are fairly distributed to all market participants and their suppliers according to contractual commitments.