FG to settle outstanding debts owed to power plants from April

Adebayo Adelabu, minister of power, says his ministry will prioritise the settlement of outstanding debts owed to power plants, including Egbin Power from April.

 

Adelabu made this known in a post on his X page on Friday.

 

According to the minister, during his recent visit to the Egbin Power Plant, he reiterated that the ministry has carried out a thorough diagnosis of the challenges that Nigeria’s power sector is currently facing.

 

“These challenges range from infrastructure limitations to supply chain constraints, and we are taking urgent action to address them and enhance power supply across the country,” he said.

 

 “To this end, the Federal Government is fully committed to implementing proactive measures. Starting in April, we will prioritize the settlement of outstanding debts owed to power plants like Egbin Power.

 

“By doing so, our goal is to provide incentives for the continuous operation of these crucial facilities and to enhance their overall efficiency.”

 

Adelabu acknowledged the importance of ensuring power generation companies have access to crucial foreign exchange for their maintenance and operations.

 

 “This access is crucial for sustaining and improving power output on a national scale. We are taking decisive steps to facilitate this access, recognizing its critical role in the broader context of our energy infrastructure,” he said.

 

“Our ongoing discussions with the Ministry of Petroleum Resources and gas suppliers are centered on addressing gas supply constraints and facilitating debt repayment.

 

“Through collaborative efforts with all stakeholders, we are dedicated to finding solutions that will benefit the entire sector and contribute to its long-term sustainability.”

 

Also, Adelabu said gas shortage has significantly hampered the operation of gas power plants.

 

Through close collaboration with the ministry of petroleum resources and gas suppliers, Adelabu said work is ongoing to tackle the issue and ensure a reliable gas supply for power generation.

 

The minister also commissioned two projects during his visit; the environment-friendly electric vehicles project and expansion projects on staff quarters named after Tinubu.

 

Adelabu commended the board and management team of Egbin Power for their unwavering commitment to improving and maintaining infrastructure despite facing numerous challenges.