The Federal Government has disclosed that plans are underway to defray all outstanding debts owed power generation and gas supply companies.
Minister of Power, Mr. Adebayo Adelabu, disclosed this during his tour of the Niger Delta Power Holding Company Power Plants located in Ihovbo, Edo State.
He said the militating factor in power supply is actually the shortage in gas supply which the Federal Government is working to resolve.
“The federal ministry of finance, federal ministry of budget and economic planning and federal ministry of power have met with Mr President and he has mandated us to go and work out how we are going to defray the outstanding debts being owed this generation company and the gas supply company.
- BREAKING: ‘Tinubu will visit Qatar’, FG debunks reports on rejection
- Nigeria to ban cooking gas export to crash price – Minister
“Very soon, we are going to come up with a repayment plan in terms of past injection to pay back the loan in terms of giving them guaranty instrument and promissory note that will assure them of future payment with interest, or even allowing the gas company access to some of our gas well which would be used to defray some of these outstanding debts.
“Ihovbo plants owned by the federal government under the Niger Delta Power Holding Company. It is a plant with four turbans with capacity of about 500 megawatt. It is running at 20 percent capacity utilization which is a gross lack of optimization of our investment,” Adelabu said.
According to him, the facilities in the power sector are under utilized despite the huge investment in the sector by the federal government.
He added: “Government has invested so much money in the energy sector but it is a pity that Nigerians are still battling with issues of electricity.
“I have gone round this installation and contrary to general believe, Nigeria has invested so much in power generating plants and these plants are well maintained and in good conditions that can give us the kind of power generation that we need. The issue we have with powe plant is more of a distortion in the evacuation of power.”
He noted that if the plants are performing at utmost capacity, it would be difficult for the transmission company to evacuate the power.
The Ihovebe Power Plant managing director, Geidu Ugbo, said once the Benin line to Osogbo and Benin line to Geregu are completed, they would be able to generate and evacuate generation from the four power plant or 50 percent of it.
“The minister has seen what need to done and would see to it that the transmission provide the facilities to evacuate power from the power plants,” he added.
