THE Federal Government has disclosed that it is paying an annual stabilisation fund of N150 billion to keep the power sector in business.
The Head, Origination, Contract Management and Administration of the Nigerian Bulk Electricity Trading Company (NBET), Johnson Akinnawo, told journalists today at a workshop holding in Lagos that the stabilisation fund had been bridging the gap of some outstandings in payment shortfall in the sector.
Akinnawo said the gap arose from the Federal government’s inability to effect cost-reflective tariff over the years.
He said, “The government has to rescue the power sector from lots of overhanging debts. The DisCos’ (power distribution companies) balance sheet is not good enough, but through the power sector recovery programme, the CBN is ensuring recoveries of debts in order to sustain the sector.”
He stressed that the government was determined to ensure that all power sector players obey all the necessary laws and abide by market rules to…
