Fidelity bank banner UBA 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 Share on Google+

Views: 2,703


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 Share on Google+


 

CLASSIFIED ADS

 

You may also like...
2019: God will remove Buhari — Obasanjo

Terrorists, criminal gangs looking around for nuclear ingredients...

Dogara bows to pressure, agrees to seek re-election...

Kukah passes vote of no confidence on politicians...

NSCDC recovers 2 cartons of suspected hard drugs...

18 out of 30 Sokoto Assembly members dump...

Shocker: International 419ners penetrate Nigeria’s Central Bank

Boycott mars Anambra PDP Ward Congress

Buhari promises release of Chibok girls as they...

2019: U.S.-based woman joins presidential race

APC will remain strong and continue to offer...

Abia USA group protests against Governor Ikpeazu •Calls...

 

Latest News BREAKING: Ex-Ohanaeze President Dozie Ikedife is dead Something is wrong with the leadership of the Nigerian Army: Ex-British Police Officer Liverpool, Spurs, PSG squeeze into Champions League Last 16; Napoli, Inter out Explosion rocks Umuahia Catholic Church Atiku, Ezekwesili absent as Buhari and other candidates sign Peace Accord Party Chairmen protest during signing of peace accord, allege deceit I wasn’t invited to Peace Accord meeting: Atiku South East activists hold special session, warn against scientific rigging of 2019 elections Okowa, Aisha Buhari call for sensitisation on gender streaming, advocate a re-engineering of the civil service PDP to Buhari: Stop shielding corrupt relatives Gunmen hijack 18-seater passenger bus in Rivers Police receive 104,289 applications for 10,000 jobs

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (429,699 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (394,701 views) Shameless Genevieve Nnaji exposes breasts in public (327,600 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (280,923 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (247,761 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (229,213 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (212,024 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (193,236 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (179,517 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (170,388 views) Lagos plane crash: Journalist releases victims’ names (167,184 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (153,661 views)

 

Zenith Zero Balance First Bank chat banking

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (76) Business & Economy (3,874) Business Verdict (54) Columnists (972) Complaints & Requests (95) Enterprise & Opportunities (208) Entertainment (575) Features (679) Global Business Monitor (311) International (2,807) Interview (167) Live Commentary (28) Love Matters (146) Maggie's Blog (69) News (41,353) Opinion (1,150) Pidgin (13) Politics (8,130) Religion (911) Sports (1,817) Stock Watch (35) AMA & Al Jazeera Global Update

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera