Banks Scared Over Fate Of Investments In Power Sector, Calls For Tariff Increase.

Concern has been raised by Nigerian banks over the possibility of losing about N1 trillion they invested in the acquisition of the privatized assets of the Power Holding Company of Nigeria, PHCN as they fear they may be unable to recoup their investment following the myriad of problems facing the sector.

Group Managing Director/Chief Executive Officer, Diamond Bank Plc, Dr. Alex Otti, had at a power investors’ forum in Abuja, said that as at 2013, the banking industry has invested well over N750 billion in the power sector and are ready to do more.

To ensure the power companies become more profitable and buoyant enough to repay their debts, the banks have called for an increase in electricity tariff and in the price of gas.

Some of the chief executives of banks, who spoke at the just concluded Seventh Lagos Economic Summit, tagged Ehingbeti 2014, complained of the revenue profile of the recently privatised power companies, saying it is not meeting the expectation of investors.

The bankers’ call may not go down well with Consumers of electricity who have been complaining since the privatisation that they have seen no improvement in power, but rather have been paying for the power they don’t consume.