Lenders appoint receiver for major Nigerian power firms, notice shows
KEPCO owns 70% of Egbin Power, Nigeria's biggest electricity generator. The news comes as the sector faces a cash crisis estimated at 2 trillion naira ($1.31 billion).
The receiver/manager Kunle Ogunba, a lawyer, appointed by a trustee to KEPCO's lenders on June 19, the notice said.
Power firms in Nigeria have been struggling after the sector was privatised more than a decade ago. This raises concerns about the future of private investment, especially for upgrading the country's power grid and adding renewable energy.
Many of the companies were bought using loans after the 2013 privatisation. Now, banks are focusing on recovering debts instead of lending more money.
The move has sparked fresh debate about the viability of Nigeria's electricity market, the role of government support, and whether private companies can succeed in the sector.
($1 = 1,523.75 naira)
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The Guardian
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Reuters
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Reuters
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