FG to settle outstanding debts owed to power plants from April

FG to settle outstanding debts owed to power plants from April

Adebayo Adelabu, minister of power, says his ministry will
prioritise the settlement of outstanding debts owed to power plants, including
Egbin Power from April.

 

Adelabu made this known in a post on his X page on Friday.

 

According to the minister, during his recent visit to the Egbin
Power Plant, he reiterated that the ministry has carried out a thorough
diagnosis of the challenges that Nigeria’s power sector is currently facing.

 

“These challenges range from infrastructure limitations to
supply chain constraints, and we are taking urgent action to address them and
enhance power supply across the country,” he said.

 

 “To this end, the
Federal Government is fully committed to implementing proactive measures.
Starting in April, we will prioritize the settlement of outstanding debts owed
to power plants like Egbin Power.

 

“By doing so, our goal is to provide incentives for the
continuous operation of these crucial facilities and to enhance their overall
efficiency.”

 

Adelabu acknowledged the importance of ensuring power
generation companies have access to crucial foreign exchange for their
maintenance and operations.

 

 “This access is
crucial for sustaining and improving power output on a national scale. We are
taking decisive steps to facilitate this access, recognizing its critical role
in the broader context of our energy infrastructure,” he said.

 

“Our ongoing discussions with the Ministry of Petroleum
Resources and gas suppliers are centered on addressing gas supply constraints
and facilitating debt repayment.

 

“Through collaborative efforts with all stakeholders, we are
dedicated to finding solutions that will benefit the entire sector and
contribute to its long-term sustainability.”

 

Also, Adelabu said gas shortage has significantly hampered
the operation of gas power plants.

 

Through close collaboration with the ministry of petroleum
resources and gas suppliers, Adelabu said work is ongoing to tackle the issue
and ensure a reliable gas supply for power generation.

 

The minister also commissioned two projects during his
visit; the environment-friendly electric vehicles project and expansion
projects on staff quarters named after Tinubu.

 

Adelabu commended the board and management team of Egbin
Power for their unwavering commitment to improving and maintaining
infrastructure despite facing numerous challenges.

Source: FG to settle outstanding debts owed to power plants from April

 - NigerianEye

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