Electricity Distributors Association of Nigeria, EDAN, have raised alarm over the massive and growing N300 billion revenue shortfall just as power generation capacity continues to plunge.
The General Manager, Public Affairs of the Transmission Company of Nigeria, TCN, Clement Ezeolisah, in a statement attributed the development to constraints in the thermal power stations, which prevented the generators from producing at optimal levels.
The country had in March 2016 recorded a zero mega watts power generation due to what authorities attributed to system failure.
Addressing newsmen at a World Press Conference in Lagos recently, Executive Secretary of EDAN, Sunday Oduntan, expressed concern that the N300 billion industry shortfalls is massive and growing, arguing that the development poses severe liquidity crisis.
He said: ‘‘This is a cash liquidity crisis that threatens to completely undermine the electricity value chain and its ability to continue to serve its consumers.’’
Oduntan disclosed further that the revenue shortfalls adversely impact the ability of the Discos to make capital investments in metering, network expansion, equipment rehabilitation and replacement, critical for efficient service delivery.
