Business Hilights
Tracking Nigeria's Headline Business News Online

Fashola uncovers key reason for funding crisis in Nigerian power sector

Contrary to speculations and claims that debts owed power distribution companies (Discos) and Gencos were the major cause of paucity of fund, the Minister of Power, Works and Housing, Mr. Babtunde Fashola, has disclosed that their top officials were awarding inflated contracts to their relatives.

He said this act compounded the cash crisis prevailing in the sector in the last couple of years.

Accordingly, the Minister has threatened to sanction the firms for their continued inability to deliver on agreed terms and condemned the recent statements by the firms.

Fashola averred that their allegations of obsolete infrastructure in the power sector are unnecessary because they were aware of the state of the facilities when they purchased the assets.

Speaking during the 15th monthly meeting of power sector stakeholders in Jos, Plateau State, he demanded that participants should cast a vote on whether to carry on with the meeting every month or to put an end to it, as he expressed worry over the poor attendance at the forum.

He frowned on the determination of Discos not to make digital meters available for power users even as they continue to remit very poor revenue to the market and making false allegations against the government, among others.