By Idowu Oyebanjo, MNSE CEng MIET UK
This year
has had its “ups and downs” and the power sector is no exception. The year
started with a generally low mood in terms of the quantum of power generation available
for distribution from none to a peak of 5,222MW on 18th of December,
2017. Early on in the year, the Nigerian Bulk Electricity Trading Company
(NBET) decried the generally low level of remittances from the distribution
companies (DisCos) which has led to the rising spate of on-going debt and
general illiquidity in the Nigerian Electricity Supply Industry (NESI).
The
average monthly remittance from the DisCos was as low as 30 percent with all
the operators trading blames on who is responsible for the situation. This has
led to the inability of the generating companies (GenCos) and the transmission
company of Nigeria (TCN) to pay for services procured in generating and
transmitting power to the DisCos. The illiquidity in the NESI has resulted in a
generally low mood for all stakeholders including Banks, financial
institutions, relevant ministries, departments, agencies, potential investors
(local & international).