Thursday, June 20, 2024

Power Sector Liquidity Climbs To N900bn – FG

The Nigerian Government has announced that the liquidity in it’s power sector increased from N282bn in 2015 to N900bn, adding that its financial burden in the industry had been reduced by about N373bn.

The Nigerian Electricity Regulatory Commission made the disclosure at the Ministerial Retreat on the Integrated National Electricity Policy and Strategic Implementation Policy.

Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. The most liquid asset of all is cash itself.

In a presentation at the event, the Chairman, NERC, Sanusi Garba, said, “Liquidity in the market has moved from N282bn in 2015 to N900bn now. We have also created a mechanism for enforcing payment discipline in the industry. This has seen Disco revenue improve greatly.

Power Sector Vital For Economic Growth – Minister

“We have reduced the fiscal burden on the government from N528bn to N155bn in 2022. Without our actions, the subsidy would have been in the region of N665bn.”

Speaking on the sidelines of the closing ceremony of the summit, the Minister of Power, Adebayo Adelabu, appealed to operators and agencies in the sector to work with the government, stressing that those who fail to deliver would be shown the way out.

“I appeal to the people working with me, the agencies and public servants, that they should support us to ensure that we deliver and not disappoint Mr President. And I say we are using the carrot and stick approach. We are using the carrot now by appealing to ourselves.

“If this does not work, we are going to wield the big stick. Before I’m shown the way out, of course, a lot of people will also leave before me. So this (summit) is just a way of preparing ourselves to achieve the mandate and target of the power ministry,” he stated.

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