Nigerian govt owes Egbin power station N86 billion
Dallas Peavey, the Chief Executive Officer,
Egbin Power Plc, has said the company is
highly constrained by more than N86 billion
debt owed it by the Federal Government.
Mr. Peavey made this known in Lagos on
Saturday during the company’s scholarship
award programme to schools within Ijede
community in Lagos State.
He appealed to the government to pay up
the debt to enable it to carry out its
operations.
He also said gas supply had been a major
challenge to power generation.
“We have a total generation output of
1,320MW but currently we are generating
just 425MW which is 30 per cent of what
we should be generating,” Mr. Peavey said.
He said the company was considering other
sources of power generation that would
complement gas, such as Low Pour Fuel Oil,
one of the products in the fractional
distillation of crude oil.
According to him, right now the major
challenge confronting the plant is gas and
the company does not know what the future
has for the power station.
“Another big problem is that of over N86
billion being owed by Federal Government
on energy produced to the national grid in
the last six months.
“We only got 16 per cent of the total bills out of the total
money on energy generated to the national grid.
“The amount is the money owed by government through
the Nigerian Bulk Electricity Trading (NBET) to produce
power to the grid by generating companies,’’ he said.
According to Mr. Peavey, generating companies are highly
constrained by the debt burden because it is frustrating
power development plans.
“We are highly constrained by the lack of payment for
services rendered.
“No matter how much broad-minded you are and no
matter the desire to serve your nation, if services are not
paid for, the momentum to continue to serve will not be
sustained.
“Industry operators are in dire need of funds as most of the
monies used in acquiring the power assets and other post-
privatisation investments came from the banks.
“But banks do not want to hear about any delays or the
reasons for such delays. When the amount of the debt
payment is due, they simply call for their money,” he said.
Mr. Peavey said the company had spent N 760 million in
the last three years on Corporate Social Responsibility (CSR)
to communities within its area of operation.
He said the company also spent over N 120 million to offer
scholarships to indigent pupils within the community of
Ijede where it was operating.
Mr. Peavey said, “we put together the education
scholarship programme to students in the communities to
contribute part of our quota to their development.
“It is part of our CSR, which takes care of over 25 pupils’
schools fees, textbooks and other required amenities for
four years.’’
NAN learnt that NBET owes the power companies various
sums. About N28.29 billion is owed Transcorp Ughelli
Power Limited, and N9.66 billion is owed Shiroro Power
Station.
Other debts are Geregu Power Plc N7.98 billion, Kainji/
Jebba Power Station, N20.94 billion, and Sapele Power Plc,
N9.9 billion.
