The Federal Government has announced plans to disburse N130 billion to settle outstanding gas supply debts owed gas suppliers in the Nigerian Electricity Supply Industry (NESI).
The Minister of Power, Adebayo Adelabu, gave this hint during the 2024 Eighth Africa Energy Marketplace held on Thursday in Abuja.
According to him, for the current debt, approval has been given for a cash payment of about N130 billion from the gas stabilisation fund which the Federal Ministry of Finance will pay.
The minister also assured that the payment for the legacy debt was actually going to be made but from future royalties and exchange of incomes in the gas sub-sector, which is quite satisfactory to the gas supply companies.
He clarified: “The last figure was about 1.3 billion dollars and this payment, we believe, will go a long way to encourage these gas companies to enter into firm supply contracts with the power generating companies.
“The day they cannot supply gas, there is no penalty but once there is a firm contract, they will be under contractual obligation to supply gas to these power generating companies so that we have a consistent power generation”, Adelabu added.
