Many of the Nigerian banks that gave loans to core investors during the privatisation of the power sector in 2013 may have incurred losses, our correspondent has learnt.
It was gathered that the banks had, in the past four years, been struggling to ensure the repayment of the acquisition loans they granted to the power investors.
The privatisation of the power assets fetched about $3.2bn for the Federal Government, with the generation and distribution companies sold for $1.7bn and $1.5bn, respectively.
The assets were purchased with significant leverage, estimated to be 70 per cent debt and 30 per cent equity, with most of the debt provided by the local banks. Read more