Banks Deny Egbin Power New Credit Line Over FG’s N125bn Debt

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The Managing Director and Chief Executive Officer (CEO) of the nation’s biggest power station, Egbin Power Plc, Mr. Dallas Peavey, has said that commercial banks are no longer willing to grant the company fresh credit lines over an estimated N125 billion ($352) debt owed it by the Federal Government, The Sun reports.

According to him, with such huge debt, banks are now reluctant to give Egbin new loan facilities. “But we will continue to work with the banks, the Central Bank of Nigeria (CBN) and the Federal Government so that we can close that gap and lower that risk,” Peavey said. Yesufu Alonge, the head of power procurement at government-owned Nigerian Bulk Electricity Trading Plc, has however faulted the claim of N125 billion made by Peavey. According to him, the delay in payment was in part due to the fact that distribution companies owed the trading company some money, he said.

This was even as Peavey, also lamented that half of its output is wasted because of inadequate transmission infrastructure. Peavey noted that out of the roughly 1,300 megawatts currently generated by the facility’s six units, which is close to full capacity, about 700MW is lost since the grid is overwhelmed. He, however, said Egbin was working with the Transmission Company of Nigeria (TCN) to improve things.

Source: EnergyMix

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