The House of Representatives, yesterday, halted plans to raise a Federal Government secured bond of N309 billion to finance the “outrageous shortfalls” in the Nigerian electricity market.
The House also called on the Federal Ministry of Power, Works and Housing, and the Nigerian Electricity Regulatory Commission (NERC) and Nigerian Bulk Electricity Trading (NBET) to immediately halt the move to raise the bond.
This followed a motion by Rep. Edward Pwajok (Plateau-PDP), which was unanimously adopted by members through a voice vote.
Moving the motion, Pwajok expressed concern that the planned massive borrowing was in spite of intervention by Central Bank of Nigeria (CBN) in March 25, 2015, through the grant of a bailout. According to him, the bailout is to the tune of N213 billion through the Nigerian Electricity Sector Intervention (NESI) facility.
“In spite of that intervention, the shortfall, instead of being wiped out, has continued to escalate at the rate of about N15 billion per month (equivalent to N500 million daily). “It rose to a total-market shortfall of N400 billion as at Dec. 31, 2015.
“A continuing incidence of market shortfall is a distinctive action for new investors to venture into the Nigerian electricity market.”