(Ecofin Agency) - In Nigeria, the power crisis, be it electricity’s or oil’s, could lead banks to bankrupcy. This is, according to Vanguard, the concern of Adeola Adenikinju, university professor and director of Centre for Petroleum, Energy Economics and Laws (CPEEL). “If nothing is done there is that possibility of banks going bankrupt. Some of the banks are exposed to the energy sector, oil sector and electricity sector,” he warned.

According to the economist, various energy firms that owe banks have their activities slowing down, thus compromising their ability to pay their debts. “Now, some of those companies are not producing and the interests on the loans are increasing, making it more difficult for them to service those debts,” he explained.

He also asked the governor to attend to the issue before it expands to the whole economic system. “Maybe the Federal Government has to step in to help them out,” Adenikinju said.

Gwladys Johnson