Power Firms Owe Banks N861.14bn – CBN

By: Godwin Offor / May 5, 2022 / 1091

The Central Bank of Nigeria (CBN) says electricity operators owe Nigerian banks N861.14bn which has risen to 12.83 percent in one year in December 2021.

According to data from CBN, power generation firms and independent power producers increased their total debt to N522.2bn in December 2021 from N443.37bn in December 2020.

The apex bank added that transmission and distribution firms owed banks N338.94bn as of December 2021, up from N319.85bn a year earlier.

Recall that in July 2020 that the core investors in the distribution companies were looking to restructure the loans advanced to them by banks for the acquisition of the power assets.

In November 2013, the nation’s distribution and generation companies were privatised through the Bureau of Public Enterprises, fetching about $3.2bn for the Federal Government, as the Discos and Gencos were sold for $1.7bn and $1.5bn, respectively.

The Federal Government officially privatised the six successor power generation companies and 11 distribution firms that were unbundled from the defunct Power Holding Company of Nigeria.

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