The Executive Secretary of Association of Power Generation Companies (APGC), Joy Ogaji has disclosed four gas generating companies have shutdown production, as these companies struggle to access fresh loans.
The four gas generating companies were unable to pay their debt to Shell Petroleum Development Company and Total, leading to the forceful shutdown of their production plant, The Nation reported.
Ogaji disclosed the gas generating companies are seeking credit facilities from banks to continue production since the liquidity issue that exposed GenCos to over N1 trillion shortfall.
“Some of the GenCos that can access loans have resorted to taking loans to buy gas. Others that don’t have access to such loans are shutting down… Shell and Total have shut down some of the power plants that the power plants to pay them, or do not have plans to pay them.
“From what we get it is about four plants. Some of them don’t want their names mentioned. You know it is political season now.”