The Minister of Power, Adebayo Adelabu, has announced that the Federal Government will commence the partial payment of debts owed to power generating companies (GenCos) and gas suppliers starting in April. Adelabu made this declaration during a visit to Egbin Power Plc in the Ikorodu area of Lagos State.
Recognizing the outstanding debts owed to GenCos and gas suppliers, the Federal Government aims to address this issue promptly. Egbin Power Plant is highlighted as one of the significant creditors, and efforts are underway to prevent any disruptions to its operations. Adelabu assured Egbin Power’s board and management that beginning in April, the government will initiate payments toward these debts to incentivize continued operational efficiency.
Gas shortages have posed a significant challenge to gas-fired power plants across Nigeria. Collaborative efforts between the Minister of State for Petroleum Resources (Gas) and gas suppliers are underway to mitigate these shortages. The government plans to utilize cash payments and issue promissory notes to alleviate outstanding debts. Furthermore, measures will be taken to grant access to Nigeria’s gas wells, contributing to the gradual reduction of these debts over time.
The effects of these debt settlements are anticipated to be noticeable from April onwards. Adelabu has engaged with the Minister of Finance and Minister of Budget and Economic Planning, who have pledged funds to initiate debt repayments. Egbin Power, which has been grappling with revenue losses due to gas shortages, looks forward to improvements as these challenges are addressed.
The government’s commitment to resolving debt issues and addressing gas supply challenges underscores its dedication to stabilizing the power sector and enhancing electricity generation nationwide.