Nigeria’s Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, while inaugurating the board, tasked the members to explore all options of de-risking the power sector for value addition to the country.
Mrs Zainab noted that the role of NBET in the stabilisation of the power sector cannot be overemphasized and therefore urged members to use expend their skills and experiences to improve power supply in the country.
The changes at NBET comes after Association of Power Generation Companies (the umbrella body for Nigeria’s Gencos) appointed Mr. Omatseyin Ayida as its Board of Trustees (BoT) chairman.
Mr. Avida who takes over from Mr. Emmanuel Nnorom, the representative of Transcorp Power Limited, lauded the recent improvement in payment by NBET and called on the federal government to make practical steps towards the clearance of legacy power debt owed to the Gencos.
These legacy debts have been blamed for liquidity crisis which has significantly affected progress in the value chain and impacted on the risk appetite of investors that may wish to invest in various facets of the value chain.
NBET plays a key role in the generation of market confidence through well-negotiated and well aligned contracts with fair risk allocation that protects market participants from credit and systemic risks.
NBET also stands as a de-risking agent in the power industry, as it acts as a credit worthy off-taker of power procured from GenCos in the absence of bilateral contracts between GenCos and DisCos.
NBET, can be thus regarded as a defensive wall against potential payment defaults until GenCos and DisCos are able to enter into power purchase agreements on bilateral basis.