The Minister of Power, Works and Housing, Mr. Babatunde Fashola has stated that the electricity distribution companies (Discos) in the country will face insolvency proceedings and wind up if the federal Government forces them to pay debts exceeding N536 billion that they owe the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator (MO), THISDAY reports.
Fashola reminded the electricity distribution firms that as they keep pressing for the debts owed them by the ministries, departments and agencies (MDAs) of government, they should also talk about the debts they owe NBET and MO, which the federal government has not forced them to pay.
Fashola stated that money was needed to pay the generation companies but the Discos were not paying the money. “So what will the government do? We must act responsibly. We have to go and borrow money to pay our debt so that the system does not collapse.”
“But if the government now insists that we must collect all our debt, what we will be talking about will be winding up and insolvency proceedings. So we must continue to sit down and see how we can work out all of these debt issues in a way that the system survives,” he said.
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