- Convert debt to equity, Rewane recommends.
The Chief Executive Officer (CEO) of Financial Derivative Company, Bismarck Rewane, has recommended restructuring the power sector debt to fix the challenges in the sector. In an interview, Rewane stated that the Federal Government should consider converting existing debt to equity to fix the power sector.
”No silver bullet to the solution. The factor is that the power sector and the guys who bought it, bought a poisoned chalice,” Rewane said.
”Total debts outstanding to the power sector should be in the neighbourhood of ₦2 trillion. What do we do? Give it out, and convert it to equity,” he added.
Rewane also stated that the government should carry on with ongoing power sector reforms, approve a Cost-Reflective Tariff (CRT) and ensure the debt arrears of government Ministries, Departments and Agencies (MDAs) are paid in full.