FG to pay N5billion out of MDAs’ electricity debts

OUT OF THE 2019 PRO POSED budget, the Nigerian government has set aside the sum of N5 billion for the settlement of electricity debts owed by federal ministries, departments and agencies (MDAs).

The electricity debt owed by MDAs is a controversial subject because both parties involved cannot agreed on how much it is owed.

According to the electricity distribution companies (DisCos), over N90 billion is being owed for electricity supplied to them over the last three years, but the federal government after embarking on verification of electricity debts, was able to verify N27 billion.

Despite the discrepancy over the figures, the earmarked amount is still small, less than 30 percent of the verified debt by the federal government.

Bamidele Israel, an energy lawyer told business a.m. that “the federal government is also one of the problems facing the DisCos, why can’t they pay the full amount they verified,” he asked.

The DisCos are faced with a host of problems, from liquidity gap, lack of improved generation due to mismatched electricity pricing, also the lack of much needed investment in transmission and distribution network and rising energy theft among others, are hobbling their operations and in turn, adversely affecting the livelihood of Nigerians.

One of these problems that the DisCos have constantly cried out over is the enormous electricity debt owed by Ministry Departments and Agencies (MDAs).