Nigerian Government Pays $120 Million to Alleviate Gas Debts, Aiding Electricity Sector
Written by Deborah Oyinloye on March 1, 2024
Nigeria’s power generation has faced a recent decline attributed to gas suppliers halting their gas supply due to outstanding debts owed by the power sector. Minister of Power, Chief Adebayo Adelabu, highlighted this challenge.
However, during the 7th Nigeria International Energy Summit, Ed Ubong, Director of the Decade of Gas Secretariat, revealed that the Federal Government has taken steps to address the issue. Ubong stated that the government has disbursed $120 million towards settling part of the $1.3 billion debt owed to gas firms for power plant operations.
“As of last year, that (gas debts) was about $1.3 billion… But I am pleased that between October and the end of January, the government has paid over $120 million to offset some of that money,” Ubong announced in Abuja.
Moreover, Ubong emphasized ongoing efforts by the government to develop a framework aimed at resolving the debt issue comprehensively. He stressed the importance of building capacity within the sector to support this initiative, highlighting the need for training engineers and technicians.
“We must build capacity for that… And as the secretariat, we are committed to that,” Ubong affirmed, underscoring the government’s dedication to enhancing the gas sector’s efficiency and sustainability.
Author: Deborah Oyinloye
With an interest in media, Deborah aims to impart the lives of people positively.
