Shell Energy Entrepreneurs banner Yudala banner
Distributors to Senate: Reconsider stopping bond for electricity companies

By News Express on 24/10/2016

Share on facebook Yahoo mail icon Gmail icon

Views: 1,616


The Association of Nigerian Electricity Distributors (ANED) on Sunday appealed the National Assembly to reconsider stoppage of bond for electricity companies to avoid collapse of the power sector.

Mr Sunday Oduntan, the Executive Director, Research and Advocacy of ANED, made the appeal in a telephone interview with the News Agency of Nigeria (NAN).

Oduntan said that the sector had a huge liquidity gap, which was being bridged by Federal government’s intervention in form of bond, adding that electricity consumers longer show willingness to pay bills.

“Government’s ministries, departments and agencies owe the sector over N100 billion electricity bills.

The executive director said that bond was a form of promissory notes given to power sector in form of loan to cover some shortfalls in the industry.

He told NAN that electricity Distribution Companies (DISCOs) had no chances of obtaining bank loans because banks believed that it would be difficult to recover loans given to them.

“We are appealing to the senate to revisit its stand on stoppage of bond for electricity companies.

“At present, electricity companies need bond to balance the liquidity gap in the sector.

“Government is assisting the sector through this medium.

“With stoppage of this intervention, DISCOs will find it difficult to buy new transformers and meters, while Generation Companies (GENCOs) will not have resources to service their plants.

“The stoppage of this bond will contribute to collapse of the power sector.”

NAN reports that on Oct. 12, the senate passed a resolution stopping the Federal Ministry of Power, Works and Housing from using the Nigeria Bulk Electricity Trading Company (NBET) to give electricity companies a N309 billion bond. (NAN)

•Photo shows Senate President Bukola Saraki.

Source News Express

Posted 24/10/2016 05:05:05 AM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

 

You may also like...
Shake-up in CBN; Emefiele reshuffles Deputy Governors

NLNG calls for intensified malaria research

Ekeh lauds Stanbic IBTC Bank at launch of...

FRSC impound 482 vehicles in Niger for traffic...

APGA, Senator ask court to stop Buhari from...

Babatunde Fowler’s appointment as FIRS Chairman well deserved,...

Court sacks Ekiti monarch over faulty selection process...

Give incompetent teachers 12 months to upgrade, El-Rufai...

Militants bomb crude oil delivery line

Troops nab Chief Priest of Niger Delta militants,...

Mystery over Buhari’s return from London

Court orders final forfeiture of N449m found in...

 

Latest News Access Bank slammed with N200m suit over unlawful account freeze Herdsmen launch another attack in Adamawa, leave 3 dead 2019: Daura youths to purchase nomination forms for Buhari, Masari Ekiti promotes 18 Vice Principals Handshake across the Niger: Ohanaeze lambasts Presidential Spokesman Femi Adeshina Kaduna teachers’ recruitment: 27,639 shortlisted for oral interview Court affirms SERAP’s right to stop ‘double pay’ for ex-governors, seek recovery of over N40bn Fire razes 50 shops, 30 containers of fish in Kano MOSOP rejects call for an Ogoni General Assembly Trump floats ‘nuclear option’ to end shutdown Ugwuanyi commissions state-constructed 103 Battalion Army Barracks road 14 foreigners killed as gunmen storm Afghan hotel

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (316,202 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (306,658 views) Shameless Genevieve Nnaji exposes breasts in public (245,517 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (201,765 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (190,389 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (179,811 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (155,931 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (140,287 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (136,281 views) Lagos plane crash: Journalist releases victims’ names (124,755 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (122,094 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (119,135 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (33) Business (2,854) Business Verdict (32) Columnists (792) Complaints & Requests (94) Enterprise & Opportunities (200) Entertainment (431) Features (541) Global Business Monitor (222) International (1,751) Interviews (139) Live Commentary (28) Love Matters (100) News (32,066) Opinion (868) Pidgin (10) Politics (4,364) Religion (667) Sports (1,408) Stock Watch (26) AMA & Al Jazeera Global Update

 

CBN Banner advert

CBN Words on marble

 

 

Football president George Weah puts Liberian army to the test

 

APO Group Partner

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!