In response to persistent power blackouts affecting various parts of the country, Minister of Power Adebayo Adelabu has announced that the federal government will set up a committee dedicated to resolving these issues. Following a meeting with representatives from electricity distribution and generation companies in Abuja, Minister Adelabu emphasized the importance of collaboration among all stakeholders in addressing the challenges facing the power sector.
“I have decided to form a committee involving all stakeholders. Together, we will work on recommendations to resolve these issues and ensure a more reliable and consistent power supply for our citizens,” Minister Adelabu stated.
Identifying Root Causes and Prioritizing Solutions
During the meeting, Minister Adelabu highlighted the primary cause of the recent decline in power supply as the insufficient supply of gas to generating companies (GenCos). Recognizing the urgency of this issue, he stressed the need to prioritize efforts to resolve the gas supply shortfall.
“Power supply during the yuletide improved, but unfortunately, we have experienced setbacks in the New Year. After investigations, it is clear that the main cause of poor power supply is the low supply of gas to GenCos,” Minister Adelabu explained.
Additionally, plans to engage with the Minister of State for Petroleum Resources to explore collaborative strategies for enhancing gas-to-power initiatives were revealed by Minister Adelabu.
Addressing Financial Challenges and Promoting Sector Stability
In addition to the gas supply issue, Minister Adelabu addressed the financial challenges facing the power sector, particularly the indebtedness of GenCos by the Nigeria Bulk Electricity Trading Company (NBET).
“While acknowledging the sector’s liquidity challenge, we are working on validating the debt and determining a fair resolution,” Minister Adelabu said.
Furthermore, efforts to establish contractual agreements between GenCos and gas suppliers were highlighted as essential for securing a steady gas supply, thereby enhancing the reliability of power generation.
“I emphasised the importance of GenCos establishing contractual arrangements with gas suppliers to ensure a steady gas supply. Recognising concessions may be needed, I assure you that we are committed to working on this to stabilise the power sector,” Minister Adelabu reiterated.
Government’s Unwavering Commitment
Minister Adelabu reassured stakeholders of the ministry’s unwavering dedication to stabilizing the power sector and expressed gratitude for their patience and cooperation as collaborative efforts continue towards achieving a more resilient and efficient energy future for Nigeria. GMTNewsng
