- Experts decry MDA debt
- Say government is killing the business of electricity supply
Experts in the energy sector have decried the rising debt profile of the Ministries, Departments and Agencies of the Federal Government (FG). The FG on Sunday announced that it had engaged the services of an audit firm to reconcile the outstanding electricity bills from the Distribution Companies (DisCos). The French Agency for Development has estimated the sector financial crisis is projected to be growing at ₦474 billion yearly.
Professor Wunmi Iledare, an Energy Economist, has stated that the FG is, by its actions, contributing to the rising debt profile of the DisCos. ”There is no better way to kill a business than starve it of operating revenue,” Iledare said. He added that the government is close to being a quasi-monopoly consumer; he stated that the failure o the FG to pay its outstanding debt has made it difficult for the DisCos to operate efficiently.
PwC’s Associate Director, Energy, Utilities and Resources, Habeeb Jaiyeola, while speaking on the rising debt profile of the DisCos, said the impact of government efforts through improvements in tariff structure, infrastructure development and others would be negatively affected if the government and private sector customers do not settle their bills when due.
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