FG ministries and agencies owe over 90 billion naira in electricity debt – Disco

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Unpaid electricity bills from federal government ministries, departments and agencies, including military and paramilitary organizations, have exceeded 90 billion naira, PUNCH gathered on Friday.

It was learned that although discussions were underway regarding its settlement, the debt had continued to accumulate over the years since the privatization of the electricity sector in November 2013.

Electricity distribution companies told our correspondent that the huge debt has strained nightclub finances, which has negatively impacted their operations.

Nigeria has 11 electricity distribution companies. The companies emerged after the unbundling of the defunct Power Holding Company of Nigeria into the successor generation, transmission and distribution companies in November 2013.

Electricity produced by the power generation companies is discharged by the Transmission Company of Nigeria to the 11 nightclubs, which distribute the product by selling it to end users to generate income for the electricity value chain.

But over time, nightclubs have complained about the failure of some end users to pay their electricity bills, especially federal government ministries, departments and agencies.

The Discos, under the auspices of the Nigerian Electricity Distributors Association, said MDAs indebtedness to the electricity sector in terms of unpaid electricity bills now exceed 90 billion naira.

Executive Director, Research and Advocacy, Sunday Oduntan told our correspondent that MDA indebtedness has lingered and unpaid bills have increased since November 2013.

He said: “The debt of all MDAs exceeds 90 billion naira and the military is one of them. We embarked in 2013 and since then, how many have been paid by MDAs?

“There was a time when a former minister in power said that he (the government) had reached an agreement on how to settle the debt, but as I speak to you the bills are still unpaid. Since privatization, there have been issues surrounding MDA debt.

Oduntan noted, however, that the current government had assured Disco that the debt would be settled, adding that discussions on how the bills would be paid were ongoing.

He further expressed optimism that the discussion would produce the desired results, as the 90 billion naira debt had blocked some level of progress in the country’s power sector.

“However, I can confirm that the current government is now working to settle the debt of MDAs. He (the government) recognized this fact as well as the need to pay off the debt, ”said the ANED executive.

He added: “It (the government) is looking at how to structure the debt and I can confirm that it continues. “

When asked to say what some of the MDAs owe the power sector, Oduntan replied, “I cannot say how much each ministry or agency currently owes, but their lump sum debt exceeds N90 billion. .

International and local consumers of electricity produced in Nigeria often fail to pay for the electricity they consume.

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