FG agrees to pay N59.3bn MDA debts to DISCO's
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FG agrees to pay N59.3bn MDA debts to DISCO’s

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The federal government has indicated it’s readiness to pay about N59.3 billion debts owed by its ministries, departments and agencies (MDAs) to electricity distribution companies (DISCOs) in the country.

The payment by the government comes amid calls by key players in the power sector to address the N809bn revenue shortfall in the industry.

The Federal Government’s resolve to pay the debts on first come, first served basis was informed by a debts verification exercise during the 13th monthly meeting of the Minister of Power, Works and Housing, Mr Raji Fashola, with operators of the power sector in Delta State.

In November 2016, GENCO’s and DISCO’s cried out over the N400 billion debts stifling operations, with the refusal of ministries, departments and agencies of government to settle their electricity bills.

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The government indicated it’s readiness to pay after receiving the verified report on the audit of debts owed to DISCOs by MDAs which estimated the debts to be N59.3 billion. “The report stated that all verified bills will be recommended for payment on a first come, first served basis.”

According to the reports, the N59.3 billion, accumulates to about 86 per cent of the debts, with N51billion owed by the top 100 customers, mainly composed of military and defence installations around the country.

Also at the meeting, Fashola inaugurated the 115MW turbine installed by Transorp Ughelli Limited, bringing installed capacity to 620MW from the 160MW inherited by the company on privatisation in 2013.

The generation company assured of its readiness to invest in facilities to increase gas supply to the power station if government created an enabling regulatory framework.

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