Connect with us

Hi, what are you looking for?

TVCE Articles

‘Foreign exchange imbalance affecting power firms’

Egbin Power Station

TVCE (LAGOS) – Chairman, Egbin Power Plc, Kola Adesina, has disclosed that the imbalance in the foreign exchange regime, occasioned by the falling rate of naira, is taking its toll on the operations of new power investors.

Adesina said the power distribution companies (DisCos) are spending more money than before to buy equipment abroad, because  the naira is falling at abysmal rate.

While speaking at a stakeholders’ meeting in Lagos, Adesina said the problem facing the naira has made it difficult for power firms  to survive, since they depend on Original Equipment Manufacturers(OEMs) in their   production.


He said: “When we bought Egbin Power Company when the sector was privatised in 2013, naira was sold for N159 per dollar. At a point, the value of naira reduced further as it was sold for N179 to a dollar, and later N196 to a dollar at the official window. The situation was worse at the black market where dollar is sold for N220 and above. This is not without its attendant consequence on operators in the sector.’’

According to him, spare parts used in the industry can only be procured in dollars, stressing that the development is having far-reaching effects on the performance of the operators.

 Adesina said despite the fiscal problem, among others, facing the sector, and the economy, Egbin Power has weathered the storm to record some successes.
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Will Smith is making a triumphant return to his hip-hop roots with the launch of his eagerly-awaited podcast, “Class Of ’88.” In this podcast,...


French rapper MHD, whose real name is Mohamed Sylla, has been sentenced to a 12-year prison term for the murder of a young man...


Manchester United’s star player, Marcus Rashford, experienced a car accident on his way home after the team’s 1-0 victory over Burnley on Saturday. Collision...


Balogun, who recently transferred from Arsenal, made his first start for Monaco but saw his initial penalty attempt thwarted by goalkeeper Marcin Bulka in...

Copyright © TVCCommuniation owner of TVC Entertainment