Business

Power Sector Faces Downfall As Banks Shun Funding

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A new report have revealed that the inefficiencies in the privatized power sector has made the Deposit Money Banks unwilling to provide loans to electricity generation and distribution firms. It was learnt that some banks were shunning the loan requests of the power firms as the financial institutions appeared no more convinced about the viability of investing in the power sector, judging by the happenings in the Nigerian Electricity Supply Industry.

Officials of the Federal Ministry of Power, Works and Housing, the Nigerian Electricity Regulatory Commission, the Nigerian Bulk Electricity Trading Company Plc, as well as those from the financial sector said the lenders were becoming very cautious about lending to investors in the power business.

It was also gathered that the inability of the power firms to meet their various contractual obligations to the NBET, gas suppliers, the DMBs and other service providers, had made some banks to shut their doors on loans to the electricity companies.

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