A Nigerian receiver has been appointed by lenders to KEPCO Power Assets and its subsidiary, Egbin Energy, two main gamers within the energy sector, including to worries concerning the trade’s monetary well being, a discover in native media stated.
KEPCO owns 70% of Egbin Energy, Nigeria’s largest electrical energy generator. The information comes because the sector faces a money disaster estimated at 2 trillion naira ($1.31 billion).
The receiver/supervisor Kunle Ogunba, a lawyer, was appointed by a trustee to KEPCO’s lenders on June 19, the discover stated.
The ability firms denied the discover and stated the matter was in court docket. The businesses have requested a court docket to halt the appointment, in keeping with court docket papers seen by Reuters.
Energy corporations in Nigeria have been struggling after the sector was privatised greater than a decade in the past. This raises issues about the way forward for personal funding, particularly for upgrading the nation’s energy grid and including renewable vitality.
Most of the firms have been purchased utilizing loans after the 2013 privatisation. Now, banks are specializing in recovering money owed as a substitute of lending more cash.
The transfer has sparked contemporary debate concerning the viability of Nigeria’s electrical energy market, the position of presidency assist, and whether or not personal firms can succeed within the sector. -Reuters
