FG Fallout With Gencos Over 1trillion Naira Debt

As a fallout of the power deal with Siemens AG, Generation Companies of Nigeria (Gencos) has said that the Federal Government is owing them over N1 trillion for the power they have generated so far.

Making this assertion in Abuja, the Executive Secretary of Association of Power Generation Companies (APGC), Dr Joy Ogaji, said that out the money, the gencos would pay the gas suppliers who had since stopped supplying them gas on credit.

Ogaji said that the gencos would have been consulted in the power deal with Siemens for the generation firms to see if their offer can foot their bill.

She, however, opined that it is possible that the contract had captured the gencos in a different document which is not known to them.

“So, we are hoping that there is another document that captures the gencos which is yet to be released to us to review and see if it foots the bill. If you want me to produce more gas for a thermal plant, I need to pay my suppliers. Currently, we are being owed about N1trillion and most of it will go to the gas suppliers that we are owing and who have refused to give us gas on credit. So, if you are projecting 7,000 megawatts, I would expect Siemens to sit down with the gencos and the gas suppliers bearing in mind that over 80 per cent of power generated in Nigeria comes through gas sources. So, the Ministry of Petroleum—–the gas suppliers—– are the critical stakeholders you can’t overlook” she said.

Apart from the gencos, the Executive Secretary, said the consumers who, equally are among the critical stakeholders , should be carried along in the deal to avoid a pushback effect.

“If the consumers are not part of it, then we have the problem of consumer pushback of ‘we are not going to pay this’. But if they are carried along, they will know we are all working together,” she suggested.