Nigerian govt owes Egbin power station N86 billion

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


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


“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


Other debts are Geregu Power Plc N7.98 billion, Kainji/

Jebba Power Station, N20.94 billion, and Sapele Power Plc,

N9.9 billion.