While speaking at the recently concluded National Conference organised by the Association of Energy Correspondents of Nigeria (NAEC), the Managing Director of Niger Delta Power Holding Company (NDPHC), Mr Chiedu Ugbo decried the liquidity challenge across the power sector value chain, Tribune Online reports.
On the effect of liquidity challenge facing the power sector, Ugbo, who was represented by Dr Stephen Ogaji, Head, Fuel & Gas/PPP, Special Projects, NDPHC, posited that “Since 2011 when we started with the first power plants, we have provided invoices of about N322 billion of energy generated out of which only 50 per cent has been received. The market is owing us about 50 per cent of the market value and this comes to about N158billion. This is huge.”
In terms of how receipts have been made, he said the market has been making some money from 2011 and it peaked in 2014 when “we realised 25 per cent. After then, it moved south. Last year however, we realised just 26 per cent of our invoice and that is a big challenge to us. If your revenue is 26 percent and your card cost is about 60 per cent, how do you balance that? You have to owe banks.”