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ARTICLE · 17 AUGUST 2016

Developing A Liquidity Solution For The Nigerian Power Sector (Part 1)

Sefton Fross
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The diagram below depicts the gas-to-power value chain and the various market participants.

NigeriaEnergy and Natural Resources
Olayemi Anyanechi
Olayemi Anyanechi
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Recently, a full page advert was placed in several Nigerian newspapers by six electricity generation companies (Gencos), warning of an impending shut down of their operations due to an outstanding N145.7 billion debt owed to them for power generated so far. Collectively, these Gencos, including the three hydro stations, account for almost 65% of Nigeria's entire available generation capacity today. The balance 35% is from the IPPs – Shell Afam, Ibom Power and Agip Okpai, as well as a few of the completed NIPP power plants that still have gas to generate power. Both the IPPs and the NIPPs are owed huge sums as well for power generated till date. For instance, the NIPPs alone are owed over N90billion!

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