According to the Managing Director and Chief Executive Officer, Egbin Power Plc, Dallas Peavey Jr., access to liquidity has remained the major bottle neck in moving the power sector forward, as most government parastatals and private agencies, among several others, are owing the power sector companies billions of naira.
Peavey threatened, that if drastic measures were not taken in the coming weeks, the power sector might collapse completely, exposing Nigeria’s populace to a total blackout.
The implication is that most businesses who depends on electricity to produce goods and services will have no option than to shutdown.
In this Tuesday, Aug. 24, 2010 photo, Esther Jacob sells cassava flour by lantern light in Lagos, Nigeria. Nigeria’s president announced a multi-billion-dollar plan Thursday to repair and privatize the oil-rich nation’s decrepit national power grid that forces people to rely on private generators to provide electricity. (AP Photo/Sunday Alamba)
Peavey said, “I think at this point, we have gone through so many stages. I think the issue here is liquidity.
“So many of the owners came, and they were thinking that they were going to be reaping some sort of returns after the first three years.
“So many of the owners came, and they were thinking that they were going to be reaping some sort of returns after the first three years.
“In reality, nobody realized that they would go through three years, and lose money. “Our parent company owns Egbin, as well as Ikeja Electric.
”We can’t continue to operate, simply because we don’t have the money to pay for materials. “We don’t have the money to pay for repairs, and we can’t continue to pay our employers, simply because we are owed so much money.
“We have gone out to banks and different financial entities, to borrow the money to continue to do maintenance. You know for banks, the limit is only so”.
Speaking on other challenges the sector is experiencing, Peavey said: “Fuel supply is also an issue.
“The second is transmission; the system is older than Egbin, which is 37 years old.
“The second is transmission; the system is older than Egbin, which is 37 years old.
“The transmission system is older than that, and they have not done anything towards the revitalisation of the system.
“They are trying to push almost 5,000MW to the system, and it is not capable of taking that.
“We have to work with the Transmission Company of Nigeria, and the government, because it is still owned by the government, to work through those issues”, Peavey disclosed.
“We have to work with the Transmission Company of Nigeria, and the government, because it is still owned by the government, to work through those issues”, Peavey disclosed.
Meanwhile, the Economic and Financial Experts, have urged President Buhari to intervene in the crisis, as most business outfits in the country cannot effectively run on petrol or diesel, due to its recent hike in price.
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