Abuja - The Director-General, Bureau of Public Enterprise (BPE), Benjamin
Dikki, said the bureau provided N50 billion to the new owners of the
country's power generating companies (Gencos).
Dikki made this known at the signing of the Escrow Account Agreement on
power between the bureau, the Nigeria Bulk Electricity Trading Company (NBET)
and three commercial banks in Abuja.
According to him, the fund is to assist the investors to stabilise the power
Dikki said the money would be in the Escrow Account as a trust fund held by
another party to be given to a borrower to help the borrower carry out its
He said the Escrow Account would be held by First Bank, United Bank for
Africa and First City Monument Bank as the lead escrow agent in the transaction.
Dikki said the banks would ensure that the agreed terms and conditions to
access the funds were strictly adhered.
He listed some of the rules to include; confirmation from power market
operators on the quantity of power a Genco supplies to the National Grid.
Dikki said the Escrow Account became necessary in order to guarantee the
safety of any investments done by owners of these Gencos in generating the much
needed power the country needs.
“We need to increase the capacity of
power that we currently produce in the country because estimates show that we require
a minimum of 40 000 megawatts for power to stabilize in the country.
Dikki said because of the high cost of power generation, it was more
realistic for the government to encourage more private sector investment in
“We need to make sure that we create the atmosphere that will enable these
Gencos owners to make investments in power generation without looking back or
worrying if they can get back the money invested," he said.
Dikki said Escrow Account was only open to generating companies and not the
distribution companies due to the type of agreement made with the distribution
companies at the point of sale.
“If you recall, the distribution companies were not given to the highest
bidder, but rather to those committed to reduce to the nearest minimum, the
Average Technical and Commercial Losses incurred at the point of distribution
by a certain percentage.’’