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The nation’s banks could lose over N466 billion exposures to the power sector due to new policy by the Nigerian Electricity Regulatory Commission (NERC).
Operators in the ailing sector say the regulation would impact negatively on their revenue and ability to pay back loans.
The industry, which had been bogged by challenges since it was privatised, may have been burdened further by the Eligible Customer and the Eligible Customer Regulations.
Already, the Distribution Companies (DisCos) have issued notice to declare force majeure, a term relating to the law of insurance and frequently used in construction contracts to protect parties when a segment of the contract cannot be performed due to emergencies, including natural disasters.
New regulation threatens N466b power sector loans
