Ten generating companies in Nigeria have received N12billion ($37million) from the N701billion ($2.2billion) intervention fund approved by the Federal Executive Council (FEC) to sustain steady power generation in the country, according to the Nigerian Bulk Electricity Trader (NBET).

“The N701 billion intervention of the federal government is a loan to NBET to, in the short term, enable it meet its payment obligations to the GenCos for power certified delivered on a monthly basis so they can have enough revenue to pay gas suppliers and run their operational and overhead costs, and it is meant to run for two years, beginning from January,” Henrietta Ighomroro, head of corporate communications at NBET said.

She explained that payment to other GenCos were delayed due to non-compliance with the necessary documentations that will prove their eligibility.

Let’s recall that earlier this year, the Minister of Power, Works and Housing, Babatunde Fashola (photo) announced that the council had approved a N701 billion payment assurance fund to be disbursed to GenCos for power delivered on a monthly basis for two years, starting from January, 2017.

NBET is a state-owned company which purchases power from GenCos to add to the national grid. However, the company recently had been faced with a series of liquidity problems which had affected its ability to deliver its public-private partnership obligations.

Anita Fatunji