The Senate has blamed the problems facing the power sector on insolvency and lack of coordination among the operators.
Chairman, Senate Committee on Power, Gabriel Suswam, stated this on Tuesday at an investigative public hearing on the sector.
The panel is probing the under-performance of the sector despite the Federal Government of Nigeria’s interventions to the tune of N1.8trn since the period of privatization.
Suswam said with the current state of the power sector, it would be unthinkable for the government to stop providing the intervention.
“Once that stops, everything will collapse.
“We’re spending huge amount of money paying debt that is already owed,” he said.
He, however, said the government must begin to focus on how to address the issue of infrastructural deficits in the power sector.
“Let’s spend money on metering.
“Let’s at least meter about 80% of those connected to the network and then be able to collect enough money to make the sector liquid.
“The problem is, the sector is insolvent.
“The discos are unable to collect money, money from MDAs, owing N98bn and individuals,” he added.
Ernest Mupuya, Managing Director, Abuja Electricity Distribution, who spoke on behalf of members of the Association of Electricity Distribution Companies, said the application of capped estimated billing would result in N1.5bn to N2bn revenue loss for each distribution company per month.
