Improved Power Supply Coming as FG Finally Pays $120 Million to Gas Suppliers to Boost Electricity

• The Nigerian government has paid gas suppliers about $120 million to boost electricity supply in the country
• The director of the Decade of Gas Secretariat, Ed, confirmed the development. Ubong recently
• The Transmission Company of Nigeria (TCN) has blamed low power supply to shortage of gas to generating companies

Legit.ng’s Pascal Oparada has reported Tech, Energy, Stocks, Investment and the Economy for over a decade.

The Nigerian government has paid over $120 million to offset some of the debts owed to gas firms to enhance electricity generation.

The Director of Decade of Gas Secretariat, Ed. Ubong confirmed this at the ongoing 7th edition of the Nigeria International Energy Summit (NIES 2024) in Abuja on Thursday, February 29, 2024.

Poor power supply blamed on gas shortage

He said the government is also working on a scheme to curtail failures in the system.

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Ubong said:

“The arrears gas producers are owed as of last year was about $1.3billion. But I am pleased that between October 2023 and the end of January, the government has paid over $120 million to offset some of that money.”

The development follows the effort of the government to address indebtedness in Nigeria’s power sector, which Electricity generating and distribution companies blame for poor power supply in the country.

He noted that the total debt owed to power-generating companies (GenCos) was about N1.3 trillion, of which 60% is owed to gas suppliers.

The Transmission Company of Nigeria (TCN) has blamed the recent drop in power supply for a decline in available generation into the national grid due to gas challenges.

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Debt to the power sector responsible for poor performance

TCN said that gas challenges impacted the bulk of power available on the transmission grid for onward transmission to nationwide distribution load centres.

Ubong stated that the government was working on a scheme to mitigate most failures.

BusinessDay reports that Akachukwu Nwokedi of the Nigerian Gas Association said that the legacy of debt owed to industry players in the electricity value chain contributed to a lack of confidence among investors.

He asked that laws be implemented to enable the business to align with the new reality in the industry.

The development comes as Aba Power Limited will supply 24-hour electricity in Aba, Abia State.

A report by Legit.ng says that Geometric Power, the parent company of Aba Power, will commence the operation this weekend.

TCN announces date Nigerians will enjoy improved electricity

Legit.ng reported that the fifty-three (53) ongoing power projects funded by the Central Bank of Nigeria (CBN) power intervention fund will be completed by May 2024, the Transmission Company of Nigeria (TCN) has announced.

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Matthew Ajibade, the TCN programme coordinator in charge of the initiative, made this known during a tour of three projects at Ojo, Isolo, and Oworonshoki transmission stations in Lagos on Wednesday, 6 December.

According to Ajibade, the project will improve the ability to transport electricity by over 1,000 megawatts upon completion.

Source: Legit.ng