Nigeria’s Minister of Power, Bayo Adelabu, addressed the nation on Friday, acknowledging recent setbacks in electricity supply and outlining steps to tackle the ongoing challenges.
Gas Shortages Identified as Primary Culprit: Following meetings with power generation (GENCOs) and distribution (DISCOs) companies, Adelabu pinpointed insufficient gas supply to power plants as the main cause of blackouts. He emphasized personal visits to facilities in Ogun and Ondo states to verify the situation firsthand.
Tackling Gas Supply and Debt Issues: The Minister declared resolving the gas supply issue a top priority. He also acknowledged the debt owed to GENCOs by the Nigeria Bulk Electricity Trading Company (NBET), attributing it to broader liquidity challenges within the sector. He committed to validating the debt and finding a fair solution.
GENCO Contracts and Collaborations: Adelabu stressed the importance of contractual agreements between GENCOs and gas suppliers to ensure a consistent gas flow. He recognized the potential need for concessions to achieve this and reiterated the government’s commitment to stabilizing the power sector.
Stakeholder Committee and Ministerial Collaboration: To address the gas supply and liquidity challenges, Adelabu announced the formation of a committee involving all stakeholders. Additionally, he plans to initiate discussions with the Minister of State for Petroleum Resources to advocate for prioritizing gas supply for power generation.
Transparency and Commitment: The Minister emphasized the government’s unwavering commitment to resolving the energy issues. He acknowledged the impact these issues have on citizens and pledged to move swiftly to tackle gas supply, debt, and overall sector stability. He concluded by asking for continued patience from the public as they work towards a brighter and more reliable energy future for Nigeria.
