The Minister of Power, Adebayo Adelabu, has said that starting from April, the Federal Government will begin to pay off some of the debts it owes power generating companies and gas suppliers.
Adelabu revealed this during a visit to Egbin Power Plc in the Ikorodu area of Lagos State on Thursday.
He also mentioned plans to work with the Central Bank of Nigeria to ensure foreign exchange allocation to the power sector, aiming to enhance its capacity for generating output.
Regarding the debts owed to stakeholders in the power sector, Adelabu assured Egbin Power Plc of the government's commitment to addressing the issue. He emphasized the importance of preventing these debts from hindering their operations.
Adelabu acknowledged the challenges caused by gas shortages, affecting all gas-fired power plants. He assured stakeholders of discussions with the Minister of State for Petroleum Resources (Gas) to address this issue.
The Chief Executive Officer of Egbin Power, Mokhtar Bounour, highlighted the significant revenue loss due to the current gas shortage. He expressed the inability to run the plant at full capacity due to low gas supply, resulting in an average generation far below its potential.
Bounour emphasized the need for increased gas availability to address the challenges faced by Egbin Power Plc.
He also mentioned the substantial debt owed to the GenCo, amounting to about N1.4 trillion, and expressed hope for improvements starting from April, as promised by the Minister of Power.
In February, Adelabu had previously stated that the Federal Government owed gas companies up to $1.3 billion.
