30th March, 2024
By Kazeem Ugbodaga
The Federal Government on Friday said it will begin settlement of outstanding debts owed to power plants like Egbin Power in other to boost power supply in the country.
Minister of Power, Bayo Adelabu said on X that during his recent visit to the Egbin Power Plant, he reiterated that the government had conducted a thorough diagnosis of the challenges currently facing the power sector in Nigeria.
He said these challenges ranged from infrastructure limitations to supply chain constraints, and that government is taking urgent action to address them and enhance power supply across the country.
“To this end, the Federal Government is fully committed to implementing proactive measures. Starting in April, we will prioritize the settlement of outstanding debts owed to power plants like Egbin Power.
“By doing so, our goal is to provide incentives for the continuous operation of these crucial facilities and to enhance their overall efficiency.
“Moreover, we acknowledge the importance of ensuring that power generation companies have access to essential foreign exchange for their maintenance and operations. This access is crucial for sustaining and improving power output on a national scale. We are taking decisive steps to facilitate this access, recognizing its critical role in the broader context of our energy infrastructure.
“Our ongoing discussions with the Ministry of Petroleum Resources and gas suppliers are centered on addressing gas supply constraints and facilitating debt repayment.
“Through collaborative efforts with all stakeholders, we are dedicated to finding solutions that will benefit the entire sector and contribute to its long-term sustainability,” Adelabu said.
He said the shortage of gas has posed a significant obstacle to the operation of gas power plants.
He added that through close collaboration with the Ministry of Petroleum Resources and gas suppliers, “we are working diligently to tackle this issue and ensure a reliable gas supply for power generation.
“I also commissioned two projects during the visit – The environment friendly Electric Vehicles Project and Expansion projects on staff quarters named after President Bola Ahmed Tinubu.
“I wish to commend the Board and Management team of Egbin Power for their unwavering commitment to improving and maintaining infrastructure despite facing numerous challenges. Their dedication plays a crucial role in strengthening the resilience of the power sector and ensuring its continued operation.”