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Devise new debt collection method – FG advises power firms

By on April 15, 2015

The Federal Government has advised the private sector-run power distribution firms to come up with new ways of collecting debts owed them by consumers.

The Minister of National Planning, Dr. Abubakar Sulaiman, stated this during an inspection tour of the Kaduna Electricity Distribution Company in continuation of his monitoring of privatised companies under the Bureau of Public Enterprises.

The minister, in a statement issued by the National Planning Commission, reiterated the government’s commitment to revamping the power sector, insisting that the idea of privatising the sector was in the best interest of Nigerians.

Sulaiman stated that the essence of the tour was to enable the government know the progress so far made by the distribution companies, especially those that were strategic to national development.

This, he noted, would help to ensure that they delivered on their mandates to Nigerians.

The minister was quoted as saying, “The Federal government is very committed to revamping the power sector. Government is doing everything right to make sure that the power sector works better and more efficiently for Nigerians to enjoy.

“The idea of privatisation is in the best interest of Nigerians.”

He also urged them to ensure adequate power supply to the people, reminding them that the idea of privatising the companies was to achieve efficiency.

The amount owed by consumers could not be ascertained but the owners of the National Integrated Power Project were said to be owed over N50bn by 11 electricity distribution companies

The over N50bn debt has become a heavy burden threatening the power supply industry in the country.

The six NIPP plants being run by the Niger Delta Power Holding Company Limited have been groaning under huge debts of power sold to the distribution companies but has not been paid for.

Other power generating companies carved out of the defunct Power Holding Company of Nigeria are also weighed down by huge debts owed by the distribution companies.

 

[Punch]