The Federal Government of Nigeria declared on Thursday that the liquidity in the country’s power sector has increased from N282 billion in 2015 to N900 billion today, and that its financial burden in the industry has been lowered by around N373 billion. This was revealed at the Ministerial Retreat on the Integrated National Electricity Policy and Strategic Implementation Policy by the Nigerian Electricity Regulatory Commission (NERC).
The efficiency or convenience with which an asset or security can be converted into immediate cash without impacting its market price is referred to as liquidity. Cash is the most liquid asset of all.
In a presentation during the ceremony, NERC Chairman Sanusi Garba stated, “Market liquidity has increased from N282 billion in 2015 to N900 billion now. We’ve also developed a system for enforcing payment discipline in the industry.”By 2022, we will have reduced the fiscal burden on the government from N528 billion to N155 billion.”
Speaking on the sidelines of the summit’s closing ceremony, Adebayo Adelabu, Minister of Power, urged operators and agencies in the sector to collaborate with the government, emphasizing that those who fail to deliver will be shown the exit.
“I appealed to those who work with me, the agencies and public servants, to help us deliver and not disappoint Mr. President. And I believe we are employing a carrot-and-stick strategy. We’re employing the carrot now by appealing to ourselves. If this does not work, we will use the big stick.” Of course, a lot of people will depart before I am shown the way out. So this (summit) is simply a means of preparing ourselves to carry out the mandate and goals of the electricity ministry,” he explained.
