FG approves debt settlement for gas-to-power arrears

UGO AMADI

The Nigerian power sector has received assurance and approval from the federal government over settlement of outstanding debts owed to gas companies providing gas supply  to the  stations

The Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo gave the assurance when he spoke at the recently organized Nigerian business community meeting with the President Ahmed Bola Tinubu in Abuja

According to him , ‘’when I came to office ,I inherited a debt in the decade of gas, and when you charge me to ensure increase in gas provision , I have been working round the clock, to see how we can achieve that. “Today, you (President Tinubu) have graciously approved the repayment plan for the debts that have been owed to the gas companies in growing the power sector and encouraging the private sector.

‘’you gave the assurance  and approve the repayment plan  for the debt that are own to the business men in gas sector.’’

‘’I believe those in the decade of gas will go home smiling, that the president has looked at their own direction. And when next I will be chairing the meeting I will be speaking very authoritatively, that the government has encouraged me to do so.’’ He stated

The implication of the approval is that ,there is no excuse to bring more volumes of gas to power plants as Nigeria government has approved the payment of approximately $900 million USD in outstanding debts owed to gas companies providing gas supply in the Nigerian power sector,

It would be recalled that over the years, the Gas-to-Power debts have been an ongoing issue in the Nigerian power sector, creating several challenges including gas supply shortages to the power plants in the country.

Daily Champion findings report that  Nigeria gets more than 70 percent of its electricity from thermal power plants that run on gas. The remaining amount of electricity comes from hydropower-generating plants.

As part of the Federal Government’s efforts to resolve the issues as well as enhance gas deliverables to the power plants, the Federal Government made a partial payment of $120 million out of the approximately $1 billion gas debts by the first quarter of 2024.

Daily Champion gathered from inside sources that details and a timeline for the payment will be available later in the month. Stressing it was important for every stakeholder to agree  to the debt settlement plan