Power Generating Companies (GenCos) have been accused of secretly selling electricity to neighbouring countries at a lower cost than the Distribution Companies (DisCos) in Nigeria.
All though documents obtained by TheNation did not show the price differentials, it said the errant GenCos were carrying out “unregulated sales or secret deals to earn foreign exchange at all cost” and in defiance of an existing Federal Government directive.
The GenCos are also said to be sidelining the Nigerian Bulk Electricity Trading Plc (NBET), a government agency in charge of the novation of international agreements.
There are 24 registered GenCos in the country.
Politics Nigeria gathered that the Federal Government has been losing revenue from the sales of electricity to the neighbouring countries.
According to the document, in Q2 and Q4 of 2022, about $16.92 million in invoices were exchanged between GenCos and international customers in Niger, Benin Republics and Togo.
The Federal Government in 2019 streamlined the sale of electricity to foreign or neighbouring countries.
Checks reveal the breaches by the few GenCos include the violation of the transfer order made pursuant to Section 10 of the Electric Power Sector Reform Act (EPSRA) by the National Council on Privatisation (NCP).
Worried by non-adherence to International Power Sale Agreement (IPSA), the administration of ex-President Muhammadu Buhari waded in to guide the GenCos.
In a memo dated July 12, 2019, the Presidency directed NBET to oversee IPSA.
An industry source, who spoke on the development, called on President Bola Tinubu to take ”a serious look at the breaches being committed by the GenCos on international power sales“
The source, who craved anonymity, said: ”What has been happening is the sidelining of NBET. Electricity is now being sold to neighbouring countries in an unregulated way.
“Buhari had directed that all international sales and purchase agreements must be negotiated directly with NBET unless otherwise approved by him ( ex-President).
“The directive became necessary in order to align with the configuration of the Nigerian electricity industry after privatisation. But this is not the case”
