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The Federal Government has paid a total of N181 billion to five generation companies (GenCos) for electricity not used by Nigerians in the last three and a half years.
The government said at the weekend in Abuja that through the Nigerian Bulk Electricity Trading Plc, NBET, the money was paid based on the contract the GenCos had with it, but noted that the electricity was not used by Nigerians.
NBET managing director and chief executive officer, Marilyn Amobi, stated this when she briefed the Minister of Power, Engr. Sale Mamman and the Minister of State for Power, Jedi Agba, when the duo assumed office at the ministry.
Amobi said: “One thing that you may hear of again is the question around undelivered capacity payment that we have made. In summary, since the transition electricity market started as at the last payment last month, NBET has bought a total of N181 billion which we paid primarily to five distribution companies based on their contracts with us, but for electricity Nigerians did not use.
“Within this context and under the N701 billion (the federal government’s Payment Assurance Guarantee intervention of 2017) which was borrowed at five per cent interest, we have paid the sum of N181 billion for electricity we did not use,” she said.
“We’ve paid Agip N103 billion, Shell N85 billion, Olorunshogo N16 billion, Omotosho N17 billion, and Azura N19 billion. And looking at it on an annual basis; in 2015, we paid N16 billion, in 2016, approximately N31 billion, in 2017 N44 billion, and in 2018 N61 billion. And so far this year, from January till date, we have paid N19 billion. The money was paid last month. The increase you’ve seen between 2017 and 2018 is attributable to the cost from two PRGs which are Azura and Seven Energy.”
According to her, the payments were made in line with the contract agreements with the companies.
The NBET boss, who confirmed reports that the Federal Government had approved another intervention of N600 billion in the electricity market, said: “Currently, government is discussing an expansion of that by another N600 billion which when added to the N701 billion will bring it to N1.3 trillion.”