Power Sector Collapsing Over N110bn Gas Debt

Nigeria’s power sector faces an imminent collapse if nothing is done to offset the huge debts owed gas producers and suppliers by power generation companies, Chief Executive Officer, Frontier Oil Limited, Thomas Dada has said.
Speaking at the ongoing Nigerian Gas Association (NGA) 10th international conference and exhibition holding in Abuja, Dada said power firms still owed gas producers more than N110bn.

He said the problem has made it difficult for power generation companies (GENCOs) to access gas for production.
“You heard of the CBN intervention, but it was just a drop in the ocean,” Dada said adding that it was a serious problem to suppliers, because “all Gencos who run thermal plants in Nigeria get their gas from producers.”
Dada stated that 80 per cent of the domestic gas in the country was sold to power plants but it is unfortunate that these 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.”
Other producers in the panel including NNPC, Shell, Total and ExxonMobil harped on the need for stakeholders in the gas value chain to sit down and talk over some of these challenges.

Credit: dailytrust

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