The Federal Ministry of Power on Wednesday stated that the indebtedness of Nigeria’s power sector to electricity generating companies and gas producers has risen to about N3.3 trillion.
Minister of Power, Adebayo Adelabu noted that Nigeria needs to start moving toward a cost-effective tariff plan, as he disclosed that rhe country presently owes $1.3 billion to gas companies, while indebted to N1.3 trillion to electricity generating companies.
Adelabu who spoke at a press conference in Abuja, insisted that he would not resign his position as the power minister, following his calls for resignation by some person.
However, Adelabu stated that the ministries of power, finance and petroleum were making effort to tackle the crisis in the sector
He also revealed that the federal Government has not yet paid the electricity subsidy for January 2024.
The power minister said “Today, we are owing a total amount of N1.3tn to the power generating companies, 60 percent is being owed by the gas suppliers.We also have a legacy debt, prior to 2014, to the gad companies of 1.3bn; at today’s rate, that is close to N2tn.
“Now, if you add N2tn legacy debt owed gas companies and the N1.3tn being owed the Gencos, we have an inherited debt of over N3tn in this sector. How will the sector move forward? Nigerians deserve the right to know this.”
He further said, we are working underground “to make sure that we resolve these issues and pay these debts either through guaranteed debt or through cash injections Instruments to ensure the continuity in the generation of power”.
Regarding the power crisis which was expressed at the beginning of the year, Adelabu said, “what happened in January was that the gas companies have been managing to supply gas to generating companies.”
However they decided to ask for their money by saying “we are not supplying gas until you pay your debts.” Adelabu added if he was in their shoes, that he will equally do the same thing.
Adelabu added that they have made provision for 2024 budget for subsidy is 450bn and that we will require N2.9tn for subsidy. so we can afford it? We must be realist about it.
“N450bn is less than 20 per cent of the almost N3tn that is required for subsidy if we must continue at the current price (for electricity). So these are things that we need to decide on as a nation.”
