Business Hilights
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Why Gencos’ revenue dropped to N32bn in May

More facts have emerged on why several power generation companies (Gencos) recorded about N31.7 billion revenue shortfall in the month of May.

Findings by Business Hilights indicated that the shortfall stemmed from the failure of Discos to pay commensurate invoices on one side, and shortfall in the N701 billion Federal Government intervention fund by Central Bank of Nigeria (CBN).

Facts and figures from the Nigerian Bulk Electricity Trading Company (NBET), showed that Gencos invoices sent to the bulk trader for the month of May was N44.47 billion, while actual payment made to them was N12.77 billion, representing about 71.29 per cent shortfall.

Besides, the Association of Power Generation Companies (APGC), had noted that the arrears of debts owed to Gencos by NBET is over N500 billion.

Accordingly, the inability of NBET to clear debt liabilities has been a source of concern to APGC members who are constantly under threat from gas producers.

Whereas analysts say, the development has left a lacuna in the gas-to-power value chain and dropped investments, several gas fields are still lying idle several years after investors received licences for their development.

NBET had during the month May, submitted a total invoice of N40.78 billion to Distribution Companies (Discos) for power purchased for onward supply to homes and offices, but was paid N12.56 billion representing 30.81 per cent, leaving a shortfall of N28.21 billion or 69.19 per cent owed by Discos.