FG to Resolve Outstanding Debts to Power Generation and Gas Supply Companies

The Federal Government has announced plans to address the outstanding debts owed to power generation and gas supply companies.

The Minister of Power, Mr. Adebayo Adelabu, disclosed this during his recent visit to the Niger Delta Power Holding Company Power Plants in Ihovbo, Edo State.

According to the Minister, the primary obstacle to power supply is the shortage of gas supply, which the Federal Government is actively working to resolve.

He emphasized that the government is committed to defraying the outstanding debts owed to the generation and gas supply companies.

“The Federal Ministry of Finance, Federal Ministry of Budget and Economic Planning, and Federal Ministry of Power have met with Mr. President, and he has mandated us to work out a repayment plan to address the outstanding debts,” said Mr. Adelabu.

“We are exploring options such as providing guarantees, promissory notes, and even allowing gas companies access to gas wells to help defray the debts.”

The Ihovbo plants, owned by the Federal Government under the Niger Delta Power Holding Company, have a total capacity of 500 megawatts but are currently operating at just 20 percent capacity utilization.

This underutilization of the facilities, despite significant investment by the federal government, has been a source of concern for many.

Mr. Adelabu stressed the need for the power sector to optimize its investments and ensure that the facilities are utilized to their full potential.

He also highlighted the importance of addressing issues with the evacuation of power from the plants, stating that the government has invested heavily in power generating plants and that these facilities are well-maintained and capable of meeting the country’s power generation needs.

The Managing Director of the Ihovbe Power Plant, Geidu Ugbo, emphasized the need for the Transmission Company of Nigeria to provide the necessary facilities to evacuate power from the power plants.

Once the Benin line to Osogbo and Benin line to Geregu are completed, the plant will be able to generate and evacuate generation from the four power plant or 50 percent of it.

The Federal Government’s commitment to resolving the outstanding debts owed to power generation and gas supply companies is a crucial step towards improving Nigeria’s power supply.

By addressing the issues with gas supply, optimizing the utilization of power plants, and improving the evacuation of power, the government can ensure that its significant investments in the energy sector translate into tangible benefits for the Nigerian people.