The Minister of Power, Bayo Adelabu, has engaged in crucial discussions with power generating companies (GENCOs) and distribution companies (DISCOs) in response to the recent setbacks in power supply experienced in the new year. The minister emphasized the urgency of addressing ongoing blackouts, citing a thorough investigation into the root causes.
Adelabu revealed that after investigations, the primary factor contributing to poor power supply is the low supply of gas to GENCOs. To gain firsthand insights, he visited facilities in Olorunshogo, Ogun State, and Omotosho, Ondo State. Resolving the gas supply challenge has been identified as the top priority.
During the discussions, the minister also addressed the issue of indebtedness to GENCOs by the Nigeria Bulk Electricity Trading Company (NBET). Acknowledging the liquidity challenge in the sector, Adelabu assured stakeholders that efforts are underway to validate the debt and determine a fair resolution.
Recognizing the need for GENCOs to establish contractual arrangements with gas suppliers, Adelabu emphasized the commitment to work on this, even if concessions are required, to stabilize the power sector.
In a proactive move, the minister announced the formation of a committee involving all stakeholders to tackle gas supply and liquidity challenges. Together, they will work on recommendations to ensure a more reliable and consistent power supply for citizens.
Additionally, plans have been set in motion to initiate discussions with the Minister of State for Petroleum Resources to collaborate and prioritize Gas to Power.
Adelabu expressed unwavering commitment to addressing the challenges affecting power supply, understanding the impact on citizens. He called for patience as collaborative efforts are underway to create a brighter, more reliable energy future for Nigeria.
