Amidst Nigeria’s ongoing power crisis, exacerbated by mounting debts and dwindling gas supplies, the Federal Government has cleared $120 million from its $1.3 billion indebtedness to gas companies.
This occurs while the country struggles with extensive blackouts caused by a reduced gas supply to power-generating plants across the country.
The Minister of Power, Chief Adebayo Adelabu, highlighted the link between the country’s power generation and its reliance on thermal power plants fueled by gas. He revealed that the recent slump in power generation since January was a direct result of gas suppliers halting deliveries due to unpaid debts from power-generating companies.
Speaking at the 7th Nigeria International Energy Summit in Abuja, Ed Ubong, Director of the Decade of Gas Secretariat, expressed optimism about the government’s efforts to tackle the issue, stating that clearing a portion of the gas debts was a positive step forward. Ubong also emphasized the need for a comprehensive framework to address the root causes of such substantial debts in the power sector.
“As of last year, that (gas debts) was about $1.3bn, depending on how you add up the numbers. But I am pleased that between October and the end of January, the government has paid over $120m to offset some of that money,” Ubong stated.
However, the challenges facing Nigeria’s energy sector extend beyond indebtedness. The Nigerian National Petroleum Company Limited has called for greater collaboration among upstream operators, particularly independent producers, to address issues hindering the effective development of divested assets in the oil sector.
“We are looking for interns, we are looking for young people who are willing to join us and then provide their time and energy supporting the wider and bigger goals of the sector.” He stated
