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FG’s debt to Egbin Power hits N1.6tn, Senate steps in

The Senate Committee on Privatization has committed to settling the Federal Government's ₦1.6 trillion debt to Egbin Power Plc.

Egbin Power is one of Nigeria's leading power generation firms.

In March, Egbin Power Plc CEO Mokhtar Bounour revealed that the Federal Government owed the GenCo ₦1.4 trillion.

The corporation notified the Senate Committee on Wednesday that the debt had risen to ₦1.6 trillion due to the government's inability to settle it.

During a visit to the power plant on Wednesday, the committee complimented the management's fortitude in the face of numerous operational obstacles.

Senator Emmanuel Udende, Vice Chairman of the Senate Committee on Privatization and Commercialisation, acknowledged Egbin Power's financial difficulties and guaranteed the company that the matter will be addressed once a full report was filed.

Udende stated that the committee, in collaboration with Nigerian Bulk Electricity Trading Plc and the Bureau of Public Enterprises, would review the debt situation and investigate ways to alleviate the financial strain.

He noted that the committee's visit was part of ongoing efforts to assess the performance of privatised assets and look into measures to improve their operations.

"I'm quite amazed by what they (Egbin Power) have accomplished. They are due a very large sum of money, N1.6 trillion, and they are still operating. I enjoy their spirit. I'm impressed that this debt is owed as they continue to operate. I'm wondering how. "Once we receive the full report, we will consider what we can do to improve the situation," he explained.

He stated that the committee might address the problem by either a motion or legislation, guaranteeing the corporation that the debt difficulties would be thoroughly investigated by all necessary parties.

He also mentioned that, in addition to the debt, the company is still dealing with issues like vandalism, grid instability, and foreign exchange concerns.

He also stated that an inquiry is underway to determine the cause of the frequent grid collapses, implying that sabotage may be involved.

Egbin Power's CEO, Bounour, emphasized the importance of support while confirming the company's commitment to sustaining grid stability and contributing to the nation's economic growth.

"We need help. In general, all GenCos and even DisCos face similar challenges: Access to FX, debt that must be resolved, and grid stability threatened by vandalism. Al has to be stopped. Access to gas at the appropriate price, domestic prices. The gas is generated in Nigeria. So all of information must be placed on the table, and we hope that they (the Senate Committee) can assist us in escalating this," he stated.

Meanwhile, Kola Adesina, the Group Managing Director of Sahara Group, underlined the importance of a collaborative, community-based discourse to address the periodic grid collapses.

He stressed the importance of community-based dialogue because vandalism is a major cause of grid collapse.

"I believe different communities should hold meetings amongst themselves. Each of us must sit down and ask ourselves a simple question. Do we really want Nigeria to grow? If the answer is yes, vandals are among us. When vandals vandalise, they are either using the stolen materials for economic gain or doing so for malicious intent. So, in any case, neither can contribute to the country's growth. In reality, it reduces our collective wealth.

"So" I believe there is a need for a coordinated community-based conversation once security personnel begin to act in this regard. We need to take a bottom-up strategy," he explained.

He emphasized that the problem is inherent in the value system and must be addressed immediately.

Despite the debt owing to the GenCo, Adesina stated that the company's objective of bringing energy to life continues to drive its activities, even in the face of adversities.

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