The Federal Government declared on Thursday that the liquidity in Nigeria’s power sector has increased from N282 billion in 2015 to N900 billion today, and that its financial burden in the industry has been lowered by around N373 billion.
This was revealed at the Ministerial Retreat on the Integrated National Electricity Policy and Strategic Implementation Policy by the Nigerian Electricity Regulatory Commission.
The efficiency or convenience with which an asset or security can be converted into immediate cash without impacting its market price is referred to as liquidity. Cash is the most liquid asset of all.
In a presentation at the event, the Chairman, NERC, Sanusi Garba, said, “Liquidity in the market has moved from N282bn in 2015 to N900bn now. We have also created a mechanism for enforcing payment discipline in the industry. This has seen Disco revenue improve greatly.
“We have reduced the fiscal burden on the government from N528bn to N155bn in 2022. Without our actions, the subsidy would have been in the region of N665bn.”
Speaking on the sidelines of the closing ceremony of the summit, the Minister of Power, Adebayo Adelabu, appealed to operators and agencies in the sector to work with the government, stressing that those who fail to deliver would be shown the way out.
“I appealed to the people working with me, the agencies and public servants, that they should support us to ensure that we deliver and not disappoint Mr President. And I say we are using the carrot and stick approach. We are using the carrot now by appealing to ourselves.
“If this does not work, we are going to wield the big stick. Before I’m shown the way out, of course, a lot of people will also leave before me. So this (summit) is just a way of preparing ourselves to achieve the mandate and target of the power ministry,” he stated.