By Ndubuisi Micheal Obineme
…Ekpo set to brief industry stakeholders on repayment plans.
ABUJA – Nigerian President, Bola Tinubu has approved the payment of approximately $900 million USD in outstanding debts owed to gas companies providing gas supply in the Nigerian power sector, according to the Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo.
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.
Based on our findings, 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 some partial payment of $120 million out of the approximately $1 billion gas debts by the first quarter of 2024.
Rt. Hon. Ekperikpe Ekpo, Minister of State Petroleum Resources (Gas), Nigeria
In a recent statement obtained by The Energy Republic, the minister confirmed that President Tinubu has approved the payment to settle all outstanding gas-to-power debts to enable gas companies to deliver the much-needed gas to the critical power sector.
The minister disclosed this at a private sector meeting, hosted by President Tinubu in Aso Rock, Abuja recently, covered by The Energy Republic.
While commending President Tinubu on this giant step taken in settling the gas debts, the minister said that since he was appointed minister, the gas debts have been a major task for the ministry, included in the Decade of Gas deliverables.
“I have been working around the clock to see how we can achieve it.
“Today, as a Father (President Tinubu), I approached you that we have a group of industry players, gas producers that have been owed some money for many years, which started in 2011.
“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.
“I believe those companies that support the Nigeria Decade of Gas will go home smiling that the President has moved in the right direction.
“In my next meeting, I will be able to speak very authoritatively that the President has encouraged me to do the needful,” the minister explained.