Liquidity biggest challenge for power sector -- Fashola

The Minister of Power, Works and Housing, Mr. Babatunde Fashola has again pointed at liquidity problem as the biggest challenge facing the power sector which has been in private hands for about three years now.

Fashola who stated this in Sokoto while launching 50,000 pre-paid meters noted that the liquidity problems manifest in the inability of distribution companies to collect money from subscribers that use electricity that is not measured.

According to him, some of the challenges include the inability of the distribution companies to reduce their losses, coupled with the volatile foreign exchange market that make it difficult for companies to plan.

The former Lagos State governor, however, admitted that debt payment and tariff adjustment would not solve the liquidity problems bedevilling the power sector.

He emphasised that maximum collection of bills by the distribution companies was critical in reducing the losses in the power sector.

The Minister held that despite the problems in the power sector, many opportunities abound for Nigerian businessmen.

He added: “Problems must not define us but it is our response to them that define us. I want to focus on opportunities that such problems present”.