The revenue shortfall in the Nigerian electricity market has appreciated to N809 billion industry operators said on Thursday, October 20.
Managing Director of the Niger Delta Power Holding Company (NDPHC), Chiedu Ugbo, and the Executive Director of the Association of Nigeria’s Electricity Distributors (ANED), Azu Obiaya, who spoke at the monthly Nextier Power Dialogue in Abuja, the said the country’s electricity sector is currently under critical liquidity crisis that could delay its improvement.
From the Distribution Companies’ (DisCos) angle, Mr. Obiaya said the shortfalls was partly due to the huge debts owed by government agencies and a set-back in customers’ payment of the approved cost reflective tariff.
The DisCos now record a monthly shortfall of N38billion on the average just as the MDAs debts rose to N53billion by July 2016.
Obiaya who lamented the revenue shortfall said: “From the period of November 1 through to December 2014, MYTO 2.0 was not cost reflective and as a result of that we have a revenue shortfall of N298 billion as at December 2014.”