THE Minister of Power, Prof. Barth Nnaji, has directed Power Holding Company of Nigeria’s (PHCN) executives, responsible for revenue mobilisation to work out strategies that will result in monthly revenue of at least N22.5 billion.
This, he disclosed, is the irreducible minimum, which must be generated to ensure regular settlement of PHCN’s obligations to power and gas suppliers like Shell, Agip and AES.
The monthly PHCN revenue, which was N11.8 billion when Nnaji assumed office last July, moved up to N15.6 billion in December, but declined to N12.8 billion in January following the general strike against the removal of petrol subsidy.
Stating this at a meeting in his office at the weekend with top ministry and PHCN executives, in Abuja, Nnaji told the executives to search for new and creative ways to recover the N100 billion owed PHCN by customers across the country, dispelling the notion that the government debt is the cause of the debt crisis.
According to him, "even when we generate N22.5 billion monthly, it will still not be big enough for our maintenance and operations, but enough for only the payment of gas and power supplies, as well as, for the wage bill, which has ballooned since we approved last June a 50 per cent increase in salary as part of the incentive package for the entire 50,000 workforce.
“What the government and all its agencies in the country owe is about only 20 per cent of the debt stock. Therefore, there must be a paradigm shift in the way we have been going about our revenue business, including the deployment of modern technology,” he added.
It is understood that the PHCN is owing Agip N60 billion for its power plant at Okpai in Delta State, which produces 470Megawatts, Shell $78 million for its power plant which generates 561MW at Afam in the Rivers State, Nigerian Gas Company N10 billion for 700 million standard cubic of natural gas, National Integrated Power Project N6 billion for power supplied from its stations in Sapele in Delta State and Olorunsogo in Ogun State, and Ibom Power N300m for the 90MW generated from its plant at Ikot Abasi in Akwa Ibom State.
He asked the PHCN Market Operators to find out companies indebted to PHCN, which are still in operation and the possibility of debt discountenance.
“You may also have to consider the question of hiring professional debt collectors,” he added.
The minister has also ordered an emergency retreat for the 11 distribution companies created out of the state-owned power utility to help create a paradigm shift.
The meeting, mandatory for chief executives and marketing chiefs of the 11 distribution companies, will hold in Lagos, this weekend, with officials of the Presidential Task Force on Power in attendance.
This, he disclosed, is the irreducible minimum, which must be generated to ensure regular settlement of PHCN’s obligations to power and gas suppliers like Shell, Agip and AES.
The monthly PHCN revenue, which was N11.8 billion when Nnaji assumed office last July, moved up to N15.6 billion in December, but declined to N12.8 billion in January following the general strike against the removal of petrol subsidy.
Stating this at a meeting in his office at the weekend with top ministry and PHCN executives, in Abuja, Nnaji told the executives to search for new and creative ways to recover the N100 billion owed PHCN by customers across the country, dispelling the notion that the government debt is the cause of the debt crisis.
According to him, "even when we generate N22.5 billion monthly, it will still not be big enough for our maintenance and operations, but enough for only the payment of gas and power supplies, as well as, for the wage bill, which has ballooned since we approved last June a 50 per cent increase in salary as part of the incentive package for the entire 50,000 workforce.
“What the government and all its agencies in the country owe is about only 20 per cent of the debt stock. Therefore, there must be a paradigm shift in the way we have been going about our revenue business, including the deployment of modern technology,” he added.
It is understood that the PHCN is owing Agip N60 billion for its power plant at Okpai in Delta State, which produces 470Megawatts, Shell $78 million for its power plant which generates 561MW at Afam in the Rivers State, Nigerian Gas Company N10 billion for 700 million standard cubic of natural gas, National Integrated Power Project N6 billion for power supplied from its stations in Sapele in Delta State and Olorunsogo in Ogun State, and Ibom Power N300m for the 90MW generated from its plant at Ikot Abasi in Akwa Ibom State.
He asked the PHCN Market Operators to find out companies indebted to PHCN, which are still in operation and the possibility of debt discountenance.
“You may also have to consider the question of hiring professional debt collectors,” he added.
The minister has also ordered an emergency retreat for the 11 distribution companies created out of the state-owned power utility to help create a paradigm shift.
The meeting, mandatory for chief executives and marketing chiefs of the 11 distribution companies, will hold in Lagos, this weekend, with officials of the Presidential Task Force on Power in attendance.
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