Nigeria’s Power Sector is Collapsing Due to Mounting Debts

power-plant

 

  • Nigeria’s power sector faces an imminent collapse if nothing is done soon
  • Power generation companies have huge debts owed to gas producers and suppliers
  • This was revealed by the Chief Executive Officer, Frontier Oil Limited, Mr Thomas Dada

This is not the best of times for the Nigeria power sector if the submission of the Chief Executive Officer of Frontier Oil Limited, Mr Thomas Dada is anything to go by.
According to Mr Dada, the power sector may collapse soon if nothing is done to address the huge debts power generation companies are owing gas producers and suppliers in the country. Dada was speaking at the ongoing Nigerian Gas Association (NGA) 10th international conference and exhibition holding in Abuja, Daily Trust reports.
He said the power generation companies (Gencos) still owed gas producers more than N110bn, adding that the issue has made it difficult for them to access gas for production. “You heard of the CBN intervention, but it was just a drop in the ocean because all Gencos who run thermal plants in Nigeria get their gas from producers,” he said. Dada also stated that 80 per cent of the domestic gas in the country was sold to power plants, but added that it is the plants are still in the possession of government. “Despite the so called privatization which has not been properly concluded. We want the privatization of the power sector to be fully concluded,” he concluded.
He said the power generation companies (Gencos) still owed gas producers more than N110bn, adding that the issue has made it difficult for them to access gas for production. “You heard of the CBN intervention, but it was just a drop in the ocean because all Gencos who run thermal plants in Nigeria get their gas from producers,” he said. Dada also stated that 80 per cent of the domestic gas in the country was sold to power plants, but added that it is the plants are still in the possession of government. “Despite the so called privatization which has not been properly concluded. We want the privatization of the power sector to be fully concluded,” he concluded.

Source: Naija

(Visited 42 times, 2 visits today)

Local News

Tags

Related posts

Top
Powered by Nextier