The Nigerian Electricity Regulatory Commission (NERC), is set to release a minimum recapitalisation level required to be met by core investors in the power sector, The Guardian reports.
NERC identified capital adequacy as a major issue in the power sector, pointing out that the successor companies of the Power Holding Company of Nigeria (PHCN) were handed over to the core investors without any liability. As a result, after three years of operating the successor companies, there have been colossal losses, thus necessitating the need to set minimum capital adequacy requirement by the investors.
The NERC Vice Chairman, Sanusi Garba, gave the indication at the 14th Power Sector Stakeholders’ meeting held at the National Control Centre, Power Line, Oshogbo, Osun State. Garba however did not indicate how much the core investors in the GenCos and DisCos are expected to beef up their capitalisation with, or the time frame for its actualisation.
Garba said that within the next few weeks, the necessary consultation will begin, and NERC will direct the core investors to meet the new minimum capital so that they will be able to perform the required investments, reinforcements and service delivery that consumers need throughout the country.