Power sector collapse: Banks cry out over fate of investments
LAGOS—Nigerian banks have expressed concern over the possibility of losing about N1 trillion they invested in the acquisition of the privatized assets of the Power Holding Company of Nigeria, PHCN.
The banks are expressing fears that they may be unable to recoup their investment following the myriad of problems facing the sector.
Group Managing Director/Chief Executive Officer, Diamond Bank Plc, Dr. Alex Otti, had at a power investors’ forum in Abuja, said that as at 2013, the banking industry has invested well over N750 billion in the power sector and are ready to do more.
To this end, the banks are calling for an increase in electricity tariff and in the price of gas, saying this will help boost the revenue profile of the power companies and their ability to repay their debts.
Some of the chief executives of banks, who spoke at the just concluded Seventh Lagos Economic Summit, tagged Ehingbeti 2014, complained of the revenue profile of the recently privatised power companies, saying it is not meeting the expectation of investors.