NBET owes GenCos N31.7billion in May

Despite the Federal Executive Council (FEC’s) approval of N701billion for the Nigeria Electricity Bulk Trading (NBET), as power purchase guarantee fund, the still owed Generation Companies (GenCos) over N31.7billion as at May, a sum less than five per cent of what has been approved.

NBET is charged with bulk electricity trading, and buys power from the GenCos. The Federal Government in early March, approved the N701billion through the Central Bank of Nigeria (CBN), to resolve its liquidity crisis and facilitate payments to GenCos for power purchased.

But documents made available to The Guardian, revealed that in May, out of GenCos invoices worth N44.47billion presented to NBET for payment, only N12.77 billion representing 28.71 per cent of the total. This left an outstanding indebtedness of N31.7 billion or 71.29 per cent.

Apart from this amount, the Executive Secretary of Association of Power Generation Companies (APGC), Dr. Joy Ogaji, had calculated the arrears of debts owed to GenCos by NBET at over N500billion. She said such protracted debts inhibit GenCos from paying for gas supplied by Gas Companies for power generation and further investment in the power sector.

This implies that GenCos are operating below installed capacities and thus, hindered from increasing power out necessary to boost socio-economic activities.
Similarly, during the month in review, NBET made a total invoice of N40.78billion to Distribution Companies (DisCos) for power purchased for onward supply to homes and offices but was paid N12.56billion representing 30.81 per cent, leaving a shortfall of N28.21billion or 69.19 per cent owed by DisCos.

Further breakdown of the invoice payments put the Abuja DisCo as the highest performer which received invoice of N5.232billion and paid about N2.093billion. Ikeja Electric followed with a payment of over N1.831billion or 40 per cent out of about N4.579billion invoice received, where Kano recorded the lowest payment performance with 13.9 per cent with invoice value of about N2.873billion but paid only N400million.