Senate Urges FG Against Raising N309 Billlion Electricity Bond

 

The Senate on Tuesday urged the Federal Government to stop plans by the Nigeria Bulk Electricity Trading Company to raise a N309bn bond to finance electricity generation in the country to erase the recorded shortfall in projected power availability.

Following a motion sponsored by Sen. Mustapha Bukar, the senate said that the government should put the plan on hold pending conclusion of an investigation into the matter by its committees on Power and Privatisation. Bukar said that there was no need for the bond after the Central Bank of Nigeria’s intervention in March to the tune of N213 billion through the Nigerian Electricity Sector Intervention.

He said that the shortfall in power generation had continued to escalate at the rate of about N15 billion per month which was equivalent to N500 million daily. He said that total shortfall as at Dec. 31, 2015 was N400 billion. Bukar argued that the issuance of bonds would amount to not only spoon-feeding the operators in spite of their inefficiency, but also at great cost to Nigeria.