The Minister of Power, Adebayo Adelabu, has revealed that the Federal Government would start settling part of the debts owed to power generating companies and gas suppliers from April.
This was part of his speech as he made working visit to Egbin Power Plc in Lagos State Thursday.
“The Federal Government is owing the power generating companies a lot of money; top on the list of the creditors is Egbin Power plant. We don’t want this to cripple their operations. They’ve been magnanimous enough to continue generating, otherwise they could have parked up. We don’t want this to happen to this power asset.
“The Federal Government is now prioritising paying-down on the outstanding debts and I have assured the board and management that effective from April, we will start paying down on debts, as a form of incentive to continue to have them in operation,” he stated.
“Gas shortage has been an impediment to all our gas-fired power plants. We already have discussions with the Minister of State Petroleum Resources (Gas) and we are also meeting with the gas suppliers to plead with them that the Federal Government is prepared to start paying down on the debts that we owe the gas supplying companies,” he disclosed when asked about the gas shortage being experienced.
“We are going to make some cash injection in terms of payment and give them promissory notes. We are also looking at allowing them access to Nigeria’s gas wells so that this will be used to defray the outstanding debts of the gas suppliers over time.
“This will be a thing of the past very soon. We will start seeing the impacts of this from April. I’ve had meetings with the Minister of Finance and Minister of Budget and Economic Planning, and they are promising me that they are going to give us some funds to start paying down on these debts”.
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