The debts which the Nigeria Electricity market is owing biggest power plant in Sub-Saharan Africa, Egbin Power Plc, has hit N388 billion.
Director, Egbin Power, Mr. Kola Adesina, who declared this when the Senate Committee on privatisation and commercialisation paid a facility visit to the plant in Egbin, Lagos, maintained that the debt, which the Nigeria Bulk Electricity Trader (NBET) is owing the plant, may put a question mark on the country’s sanctity of contracts.
As a company that believes in Nigeria, Adesina said, Egbin, which “has invested $1 billion in its value chain, is perfecting investment plan of $2 billion for expansion.”
He gave the breakdown to include $1.8 billion for Egbin Power 2 and overhaul of the existing plant as well as $200 million for estate (quarters).
“The plant, which is the biggest in Sub-Sahara Africa with capacity of 1320 MW was generating 400 MW as at the time we took over, but today the generation has been surged above 800MW. At some points, we generated 1,100MW. We have been doing an average of 1,000MW this year.
“We are having a future investment including the Egbin 2 expansion, overhauling of Egbin 1 and staff quarters that will cost $2 billion.
“Despite these, there are challenges we face that we want this committee to help us with. The NBET still owes Egbin a debt of N388 billion including money for actual energy wheeled out and interest for late payment.
There is a challenge of gas constraint, which cost us 106.34MW since June 2020 due to these external constraints. In 2021 alone, we have lost N13.68 billion to these external constraints.
Stating that his company would stop at nothing to help the Nigeria’s course for power supply improvement, Adesina noted that Sahara Group, owner of Egbin, has also invested in distribution stratum of the power industry through the Ikeja Electric.
“We made an investment of $1 billion in total for the generation and the distribution because we know that there is a need for a handshake between the generation and distribution. An average Nigerian doesn’t understand what Megawatt means. What he or she understands is to press his or her switch and the bulb comes on.