Nigeria’s power generation companies (Gencos) recorded about N31.7 billion revenue shortfall in the month of May due to the failure of Discos to pay commesurate invoices and shortfall in the N701 billion Federal Government intervention fund by Central Bank of Nigeria.
The Nigerian Bulk Electricity Trading Company (NBET) statistics reveals that Gencos invoices sent to the bulk trader for the month of May was N44.47 billion, while actual payment made to them was N12.77 billion, representing about 71.29 per cent shortfall.
The Association of Power Generation Companies (APGC), said the arrears of debts owed to Gencos by NBET is over N500 billion.
However, NBET’s failure to clear its debt liabilities has been a source of concern to APGC members who are constantly under threat from gas producers.
The development has left a lacuna in the gas-to-power value chain as investments appear stunted with several gas fields lying idle several years after investors received licences for their development.
In the month under review, NBET submitted a total invoice of N40.78 billion to Distribution Companies (Discos) for power purchased for onward supply to homes and offices, but was paid N12.56 billion representing 30.81 per cent, leaving a shortfall of N28.21 billion or 69.19 per cent owed by Discos.
