2017 budget: provision for payment of MDAs power debt excites AEDC

Shareholders in the Abuja Electricity Distribution Company (AEDC) have on Friday, expressed gladness over the provision made in the proposed 2017 budget for payment of outstanding electricity  debts owed by Federal Government ministries, departments and agencies (MDAs).

A statement issued in Abuja by the Chairman of the AEDC Board of Directors, Ambassador Shehu Malami, said with the President’s high sense of integrity, diligence and pledge to faithfully implement the 2017 National Budget,”it is only a matter of time before the outstanding electricity bills of the MDAs are settled, once the National Assembly assents to the proposal.”

The statement reads in part:”The shareholders in Abuja Electricity Distribution Plc (AEDC) have applauded President Muhammadu Buhari’s approval of the settlement of outstanding electricity bills owed by Federal Government ministries, departments and agencies (MDAs), saying that the action further affirms Mr. President’s unwavering commitment to revamping the Nigerian power sector as a major step towards ensuring the growth and development of the nation’s economy.

“The approval for defrayal of the outstanding electricity debts was announced in President Buhari’s 2017 National Budget presentation before the National Assembly on Wednesday.”

Quoting from the President’s speech, he said Buhari had stated that;” During 2016, we conducted a critical assessment of the power sector value chain, which is experiencing major funding issues.

“Although Government, through the CBN and other Development Finance Institutions has intervened, it is clear that more capital is needed. We must also resolve the problems of liquidity in the sector.

“On its part, Government has made provisions in its 2017 Budget to clear its outstanding electricity bills. This we hope, will provide the much needed liquidity injection to support the investors.”

He further appealed for the support from other relevant stakeholders, especially in the civil service towards the resolution, of the liquidity challenge facing the power sector in Nigeria.