The House of Representatives has blocked moves by the Federal Government to borrow N309bn bond for the electricity market as it gives reason for not supporting the move.
The House of Representatives yesterday rejected the plan by the Ministry of Power, Works and Housing to raise a federal government secured bond of N309 billion to cover the electricity market shortfall of N187 billion in 2015 and a projected shortfall of N122 billion for 2016, Vanguard reports.
The report reveals that Speaker, Yakubu Dogara, rejected the move because it is believed the bond would amount to spoon feeding operators in the power sector where tariffs had been increased twice since 2013 without noticeable improvements in electricity generation.
The plan was rejected through a motion titled “Urgent need to halt the plan to raise a federal government secured Bond of N309 billion to finance the outrageous shortfall in the Nigerian Electricity Market”, sponsored by Edward Gyang Pwajok representing South/Jos East Federal Constituency of Plateau State on the platform of the Peoples Democratic Party, PDP.
The House in its resolution also mandated its Committees on Power, Privatisation and Commercialisation, Aids, Loans and Debts Management to investigate the usage of the N213 billion intervention fund provided by the Central Bank of Nigeria in 2015 through the Nigerian Electricity Sector Intervention facility.