ABUJA – Senate of the Federal Republic yestrrday, passed a resolution urging the federal ministry of power to suspend its plans to borrow N309 billion  to finance shortfall in the Nigerian electricity market.

The loans were to be obtained through the federal government secured bond for the Nigeria Bulk Electricity Trading Company (NBET)

This is even as President Mohammadu Buhari nominated for the Senate confirmation, Akintunde Akinwande, representing South West, as chairman of the Nigeria Electricity Regulatory Commission (NERC) and Sanusi Garba, representing North West, as Vice Chairman of the Commidsion.

Other nominees as commissioners of NERC were: Nathan Shanti (North East), Moses Arigu (North Central), Dafe Akpeneye (South South), Frank Okafor (South East) and Musiliu Oseni (South West).

On the proposed borrowing plans, the senate also passed the resolution that the various institutions involved in the process of issuance of the bond should suspend actions until the Senate committee conclude their investigation and report back to the senate on the way forward for the Nigeria power sector.

They also resolved that Reports of past probes in the power sector be laid before the Senate so that it will be referred to the new committee to serve as a working document.

Earlier, leading debate on the motion, Engr. Bukar Mustapha, who sponsored the motion, expressed worry that the planned massive borrowing is inspite of interventions by government such as the bailout by the Central Bank of Nigeria (CBN) in March, 2015 to the tune of N213 billion through the Nigeria Electricity Sector Intervention (NESI) facility.

He regretted that despite the intervention, the shortfall has continued to escalate at the rate of about N15 billion per month, rising to a total market shortfall of N400 billion as at December, 2015.

He further noted that the new borrowing is being planned to be paid as a first charge on the market revenue stream ahead of CBN, whereas the first priority is to stop the bleeding in revenue and optimize efficiency by the operators.

“The successor distribution companies have failed to produce audited financial statement to NERC and BPE for the last two years, neither have they held annual general meeting to disclose their performance to the shareholders, which include the federal government”, he said.

Sen. Dino Melaye, in his contribution, recalled that Senate set up two committees previously to probe the powers sector privatisation and it has not been laid before the senate, urging that it should be laid before the Senate immediately.

Also contributing, Ibrahim Abdulahi Gobir, noted that the GENCOs and DISCOs have not invested enough in the power sector which they inherited, adding that the same GENCOs and DISCOs keep complaining that people are not paying their power bills, whereas this is because they have not provided means for people to pay adequately due to lack of metres.

Similarly, Hassan Mohammed, recalled that ad hoc was set up almost one year ago by the Senate  but yet no report submitted yet, adding that there is need to harness these reports and know the next line of action.

He added that he had also brought a motion on the issue before the Senate, which was debated and referred to the appropriate committee, yet there is no report.

Ali Ndume argued that the GENCOs and DISCOs should source money on their own and invest in the power sector, which he said was the reason why they bought the companies in the first instance.

He said the federal government should stop issuing the bond to the GENCOs and DISCOs, adding that they should not have bought the PHCN if they do not have the money to invest in it.

He lamented that the new owners  of the companies want to depend on public funds to fund the business they have bought from the public, which is not accepted.