The Minister of Power, Chief Adebayo Adelabu, disclosed that the debts owed to power companies have reached a staggering N3 trillion. This total encompasses N1.3 trillion owed to Generation companies and approximately $1.3 billion owed to Gas Companies over the years.
During a press conference in Abuja, Adelabu, alongside heads of Parastatals in the ministry, addressed the complexity of the power sector situation. He pointed out that the accumulating debts result from unpaid subsidies. The Minister likened the dilemma to choosing between implementing cost-reflective tariffs or the government paying the substantial subsidy, which amounts to billions of Naira.
Adelabu, who expressed his concern during a tour of power plants operating below 20% capacity, pledged to confront the issues head-on to achieve incremental power supply within the administration of President Ahmed Bola Tinubu. He called for patience from Nigerians.
The Minister outlined results-oriented programs aimed at advancing the sector, including reconductoring existing aging Transmission power lines, speeding up intervention projects, improving distribution infrastructures, and accelerating metering acquisition programs. He also highlighted initiatives for revitalizing Discos, addressing gas supply issues to Gencos, fixing transmission infrastructure, and advancing Presidential Power Initiatives.
Adelabu emphasized the need for resolving outstanding debts, securing gas supply contracts, and achieving grid stability and capacity expansion. He outlined ongoing activities in the Ministry and its agencies to improve power supply, including the augmentation of hydro and thermal power plants, completion of projects like the Zungeru Hydro Electricity Power Plant, and resuscitation of abandoned hydro plants.
The Minister underscored the commitment to developing renewable energy options, revisiting abandoned projects, and completing infrastructure for various power plants across the country.
