Speaking at the recently concluded conference organised by the Association of Energy Correspondents of Nigeria (NAEC), former Group Executive Director, Nigerian National Petroleum Corporation (NNPC), Mr David Ige, stated that there is need for prompt settlement of the over N1 trillion debt for the power sector to operate optimally across the entire value chain, Tribune Online reports.
According to him, “We all are agreed that we have major crisis in the energy sector. Particularly in the power and gas sectors. At the moment, the liquidity challenge is that about N1 trillion is being owed as debt across the entire value chain from gas all the way to distribution.”
He also stated that natural gas has been identified to have been affected by the liquidity challenge in power sector; “Apparently, this threatens all of the value chain from gas to power,” he said. He also added; “We need to address these fundamental issues of not utilising the installed capacity to produce gas. About 300 billion scuf that’s stranded is due to the power sector not taking the gas.”