Nigeria grapples with a severe power shortage as gas suppliers reduce or halt deliveries to power-generating companies, citing outstanding debts. The Minister of Power, Chief Adebayo Adelabu, attributes the recent decline in power generation to this debt issue, as thermal power plants heavily reliant on gas struggle to operate efficiently.
Addressing the 7th Nigeria International Energy Summit, Ed Ubong, Director of the Decade of Gas Secretariat, commends the government’s efforts in settling $120 million of the $1.3 billion owed to gas producers. This move is expected to alleviate the strain on power supply, as Nigeria heavily depends on gas for over 70% of its electricity generation.
The Federal Government’s subsidy on gas for electricity generation aims to mitigate the impact on consumers, who currently do not pay the full cost of electricity. This step signifies a crucial intervention to stabilize the energy sector and address the ongoing power crisis.
