The Managing Director and Chief Executive Officer of Afam Power Plc, Engr. Olumide Obademi, has requested that the Nigerian Bulk Electricity Trading Plc (NBET), fulfils its power generation debt that has exceeded N1 billion.
“NBET should endeavour to pay all the outstanding bills owed to Afam Power PLC in order for the company to sustain the running of the units GTs 17 & 18.”
The company currently experiences zero funding to critical projects – Olumide, who made this plea while receiving the ministerial media team led by senior officials of the Ministry of Works, Power and Housing (Power Section) during a visit to the plant in Oyigbo, Rivers State, said the company was currently experiencing zero funding of critical projects.
Liquidity has become a critical challenge – Olumide further stated that since they have not been paid for energy generation, liquidity has become a critical challenge facing the company.
“Liquidity problem also is a big challenge to the company as the little amount earned from energy generated is not fully paid by NBET.”
Problems associated with privatisation are bringing down the company
Privatisation exercises have so far contributed to the liquidity challenges facing the company. Since 2012, there has been no budget allocated to the company as a result of privatisation, thereby forcing it to survive on Internally Generated Revenue (IGR).
The company got stranded – The bidder that was supposed to handle the company’s funding could not complete payment. As a result, the company could no get funds from the capital market because its ownership was not clearly defined.
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Recall that Nairametrics had earlier reported that the company had five bidders in line to purchase some 51 percent stakes in the company and Yola Electricity Distribution Company.
FG should intervene – In view of the problems facing the company, Olumide asked the Federal Government to take over its funding by including it in the Ministry of power budget, since it has not been totally privatised yet.
“Not minding the privatisation process, the Federal Government should fund Afam Power PLC for capital projects to overhaul GTs 19 & 20 that are relatively new with a total capacity of 276MW.”