Nigerian
banks have expressed concern over the possibility of losing about N1 trillion
they invested in the acquisition of the privatized assets of the Power Holding
Company of Nigeria, PHCN.
The banks
are expressing fears that they may be unable to recoup their investment
following the myriad of problems facing the sector.
Group
Managing Director/Chief Executive Officer, Diamond Bank Plc, Dr. Alex Otti, had
at a power investors’ forum in Abuja, said that as at 2013, the banking
industry has invested well over N750 billion in the power sector and are ready
to do more.
To this
end, the banks are calling for an increase in electricity tariff and in the
price of gas, saying this will help boost the revenue profile of the power
companies and their ability to repay their debts.
Some of
the chief executives of banks, who spoke at the just concluded Seventh Lagos
Economic Summit, tagged Ehingbeti 2014, complained of the revenue profile of
the recently privatised power companies, saying it is not meeting the
expectation of investors.
Vanguard.
No comments:
Post a Comment