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Lenders appoint receiver for major Nigerian power firms, notice shows

An announcement in the local media stated that lenders have appointed a Nigerian receiver to KEPCO Energy Resources, its subsidiary Egbin Power and other major players in the energy sector. This has added to the financial concerns of the industry.

KEPCO is 70% owner of Egbin Power - Nigeria's largest electricity generator. The announcement comes at a time when the electricity sector is facing a cash crunch estimated at $2.01 billion.

A trustee appointed Kunle Ogunba as receiver/manager of KEPCO on June 19th.

The companies have denied the notice, and stated that the matter is in court. According to court documents seen by, the companies asked for a court order to stop the appointment.

After the privatisation of the power sector in Nigeria more than 10 years ago, many firms have struggled. This has raised concerns over the future of the private sector, particularly for upgrading the power grid in the country and adding renewable energies.

After the privatisation of 2013, many companies were purchased using loans. Banks are now focusing more on recovering debts than lending money.

This has led to a new debate on the viability of Nigeria’s electricity market, government support and the ability of private companies to succeed. $1 = 1,523.75 Naira (Reporting and editing by Chijioke Ahuocha, Kirsten Doovan, Sandra Maler).

(source: Reuters)