By Emma Ujah, Abuja Bureau Chief
Electricity Generating Companies (GenCos) have cried out over their payment of concession fees in dollars and called on the federal government to review the policy, to allow them to pay in Naira.
The Chairman of Mainstream Energy Solutions Limited (MESL), Col. Sani Bello (rtd), who spoke on behalf of the electricity generators, in Abuja, yesterday, said that the GenCos were facing frustrations arising from inadequate access to the dollar at the foreign exchange market.
His words, “Despite our revenues being largely in naira, our concession fees remain in dollars, leaving us exposed to huge losses on the exchange rate.
“Regrettably, most of the equipment required for the rehabilitation, installation and continued maintenance of our turbines are still being produced outside of Nigeria. We implore the Federal Government to consider a special allocation of foreign exchange to the Power Sector to alleviate the waiting period.”
Col. Bello spoke at the sealing of a contract between MESL and Power China Huadong Engineering Corporation Limited (“Power China”) for the rehabilitation of Unit 1G9, as well as, and installation of Units 1G3 and 1G4 at Kainji Hydropower Plant (“HPP”).