Developing A Liquidity Solution For The Nigerian Power Sector (Part 2)

In the first part of this article, we proposed a liquidity and payment support mechanism for the Nigeria Electricity Supply Industry (NESI), which should achieve the following objectives:

• Support NBET's payment obligations to Gencos under respective PPAs, which in turn, would enable Gencos meet their payment obligations to their Gas Suppliers under respective GSAs;
• Settle outstanding debts to Gencos and their Gas Suppliers;
• Cover anticipated revenue shortfalls which threaten the stability and sustainability of the NESI;
• Guarantee full payment to market participants (Gencos, Gas Suppliers and other market participants);
• Provide re-investible funds for Discos to fund their capital programs to reduce distribution losses and improve collection;