Power sector liquidity gap hits N1.1trn

The Association of Nigerian Electricity Distributors (ANED) has said that within two months, the power sector’s liquidity gap has risen from N1trillion to N1.1 trillion, The Nation reports.
Last November, Eko Electricity Distribution Company (EKEDC) Managing Director, Dr. Oladele Amoda put the liquidity gap at N1 trillion. ANED spokesman Sunday Oduntan however recently indicated that the liquidity gap went up by N100billion at the beginning of this year. The development, he said, suggested a 10 per cent increase in the funding gap in the industry. He said the increase followed the operators inability to fund their businesses.
He said the distribution companies (DisCos) were the “worst hit”  because they contend with huge debts caused by non-payment of bills. He said the power firms were not getting support from banks. “The sector is facing problems, such as liquidity squeeze, shortage of gas, poor generation and distribution, and weak metering system. The problems are financial and technical in nature,” he added. According to him, other issues confronting the sector include meter bypassing, stealing and vandalism of cables and other power equipment.