On Tuesday, Benjamin Dikki, Director-General of the Bureau of Public Enterprise (BPE) said that the federal government through the Bureau has provided N50 billion to new owners of the country’s power generating companies (Gencos).

This fund is to assist the investors to help stabilize the power sector. The power sector was recently handed over to these private owners as part of the privatisation program of the federal government.

Mr Dikki said that the money will be in Escrow Account and the account will be held by First Bank, United Bank for Africa and First Monument Bank.

The signing of the Escrow Account Agreement on power was between the bureau, the Nigeria Bulk Electricity Trading Company (NBET) and three commercial banks was done in Abuja.

He also said that the banks must ensure that the terms and conditions are met before the funds are finally released.

One of the rules include, confirmation from power market operators of the quantity of power a Genco supplies to the National Grid.

Mr, Dikki said that, “We need to make sure that we create the atmosphere that will enable the Gencos to make investments in power generation without looking back or worrying if they can get back the money invested.

“We need to increase the capacity of power that we currently produce in the country because estimates show that we require a minimum of 40,000 mega watts for power to stabilise in the country.

“Right now, we have a deficit of about 29,000 mega watts, even though we have 6,000 coming from PHCN and NIPP, are going to bring in 5,000 mega watts,” he said.

He also said that the agreement was only meant for generating companies and not distributing countries.