The Minister of Power, Adebayo Adelabu, has announced that the Federal Government will initiate partial debt repayments to power generating companies and gas suppliers starting in April.
Adelabu made this declaration during a visit to Egbin Power Plc in Lagos State.
Adelabu emphasized the government’s commitment to addressing the outstanding debts owed to stakeholders in the power sector.
He stated that efforts would be made to prioritize foreign exchange allocation to bolster the sector’s capacity for electricity generation.
Regarding the debt owed to power generating companies, Adelabu assured stakeholders that payments would commence in April as an incentive to maintain operational efficiency.
He also addressed the gas shortage issue, pledging to resolve it by initiating payments to gas suppliers and providing access to Nigeria’s gas wells.
Mokhtar Bounour, the CEO of Egbin Power, highlighted the challenges faced by the company due to gas shortages, which have resulted in reduced power generation and significant revenue losses.
He expressed optimism that the government’s commitment to addressing these issues would lead to improvements in the near future.
Furthermore, Bounour disclosed that the Federal Government owes power generating companies approximately N1.4 trillion, emphasizing the importance of debt payments for the sustainability of the business.
In February, Adelabu had stated that the Federal Government’s debt to gas companies amounted to $1.3 billion. The upcoming debt payments aim to alleviate financial burdens on stakeholders and enhance the stability of the power sector.
