Minister of Power, Bayo Adelabu has attributed the ongoing poor power supply in Nigeria to a low supply of gas to generating companies (GenCos).
Adelabu emphasized the government’s commitment to resolving the issue promptly.
Adelabu stated that following discussions with GenCos and Distribution companies (DISCOs), investigations revealed the primary cause of the setbacks in the new year to be the insufficient supply of gas to GenCos.
The minister personally visited facilities in Olorunshogo, Ogun State, and Omotosho, Ondo State, to assess the challenges firsthand.
Addressing the indebtedness to GenCos by the Nigeria Bulk Electricity Trading Company (NBET), Adelabu acknowledged the sector’s liquidity challenge and assured that efforts are underway to validate the debt and determine a fair resolution.
To ensure a steady gas supply, the minister urged GenCos to establish contractual arrangements with gas suppliers, recognizing that concessions may be necessary.
He expressed the government’s commitment to working collaboratively to stabilize the power sector and emphasized the formation of a committee involving all stakeholders.
The committee’s mandate is to develop recommendations for resolving gas supply and liquidity challenges, aiming for a more reliable and consistent power supply.
Adelabu also revealed plans to initiate discussions with the Minister of State for Petroleum Resources to underscore the importance of prioritizing Gas to Power.
