The Federal Government has announced the reduction of the price of gas to power from $2.50 to $2.18 with immediate effect.
Gas to power is measured in Standard cubic feet (scuf). It initially sold at $2.50 per scuf.
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While declaring open the 2021 Gas Sector Stakeholders Forum organised by the Gas Aggregation Company of Nigeria (GACN) and the Nigerian National Petroleum Corporation (NNPC) for the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project holding in Kano, Minister of state for Petroleum Resources, Timipre Sylva, announced the price reduction, which he said was an offshoot of a negotiation between the federal government and the organised labour.
The minister said the forum is geared towards sensitizing the Northern part of Nigeria of the opportunities that will come with the revamping of moribund industries in Kano and other states in the corridor of the pipeline.
He noted that experts have estimated that it will take two-three years to revamp these industries to function at optimal level and this will come at the right time when the AKK project is delivered in 2023.
While speaking at the event also, the Minister of Power, Mamman Saleh, thanked the federal government for the reduction of the gas price.
Represented by Abba Aliyu, his Special Assistant on Policy, Saleh noted that the power sector uses more than 60% of the gas currently generated in the country to generate electricity and as such the price reduction will assist the federal government’s goal of delivering sustainable power for the country.