Multibillion debt threatens Nigeria’s biggest power plant

Multimillion dollars debts to banks, gas producers and Korean Electricity Power Company (KEPCO) have constituted a major threat to operations and survival of largest power generation company in Nigeria, Egbin Power Plc. Egbin doubles as biggest single power generating station in Africa with an installed capacity of 1320 megawatts consisting of six units of 220MW each.

Managing Director of the firm, Mr. Dallas Peavey stated that the high debt profile of the company was worsened due to nonsettlement of N100 billion debt, which the Federal Government owes it. “We owe the gas companies and have others like our technical partners (KEPCO) to pay, and importantly our lenders, the banks. “Eventually these unbearable business operating circumstances and conditions would shut us down any moment if it persists. That is the simple but bitter truth,” he said.

He said Nigeria is heading towards another blackout by next week as liquidity, transmission and gas supply issues worsen the company’s operations. Peavey made the disclosure during an interactive session with energy correspondents in Lagos yesterday.

The plant, he added, was also being forced to gradually shut down due to adverse effect of grid instability that endangers its turbines. On the long list of challenges to the company was the inadequate gas supply to generate at optimal capacity, as well as the huge debts owed the company by federal government-owned Nigerian Bulk Electricity Trading (NBET) and Market Operators.

 

 

The New Telegraph, March 30, 2017

 

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