FG spent N1.5trn on privatised power firm with no result - TCN

FG spent N1.5trn on privatised power firm with no result - TCN

- In the past four years, over N1.5 trillion has been reportedly spent by the federal government to support the companies in the privatised power sector with nothing to show for it

- Usman Mohammed said it is worrisome that the government is releasing this kind of money for an industry that is privatized, adding that it doesn’t make business sense

- According to TCN managing director, people should be worried about what is going on in the nation’s power sector

The managing director of Transmission Company of Nigeria (TCN), Usman Mohammed, alleged that the federal government in the past four years had spent over N1.5 trillion to support the companies in the privatised power sector with nothing to show for it.

Daily Trust reports that Mohammed who made this known on Thursday, April 25, in Lagos, said there is also about N500 billion being planned for electricity distribution companies.

Legit.ng gathered that while speaking in Lagos at the Manufacturers Association of Nigeria (MAN) interactive forum on eligible customers regulation, Mohammed said people should be worried about what is going on in the nation’s power sector.

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He said: "Very soon, we are likely to create a big slush. We had it with AMCON and oil subsidy, we are about to have it in the power sector.

“Remember we give the power sector support under the N300 billion CBN power intervention fund; we have done N701 billion guarantee payments, government is about to do another N600 billion under the power recovery plan and there is another discussion on N500 billion distribution support.

“This is worrisome for the industry that is privatized and government is releasing this kind of money, it doesn’t make business sense.’’

He warned against build-up of slush fund in the nation’s power sector, saying continuous funding of the sector by the federal government is not in tandem with privatization policy.

"Slush fund, also called black fund, is a fund or account that is not properly accounted, such as money used for corrupt or illegal purposes, especially in the political sphere. Such funds may be kept hidden and maintained separately from money that is used for legitimate purposes," he said.

Meanwhile, Legit.ng had previously reported that Vice President Professor Yemi Osinbajo, on Monday, April 2, disclosed that the federal government succeeded in increasing power generation from 4,000 megawatts to 8,100MW over the past three years.

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It was reported that Osinbajo said this when he delivered a lecture titled: Nigeria rising: The path to prosperity, during the University of Lagos (UNILAG), 50th convocation lecture.

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Source: Legit.ng

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