The Federal Government has said it intends to pay N130 billion to settle part of the N1.3 trillion gas supply debts in the Nigerian Electricity Supply Industry (NESI).
Minister of Power, Mr. Adebayo Adelabu, stated in his address at the 2024 Eighth Africa Energy Marketplace held in Abuja.
He said President Bola Tinubu had endorsed the proposal from the Minister of State for Petroleum Resources concerning gas, which is to clear the outstanding debts owed to gas suppliers by the power sector.
Adelabu said the payments would be divided into two categories: legacy and current debts and approval had been given for a cash payment of about N130 billion from the Gas Stabilisation Fund which the Federal Ministry of Finance will pay, for the current debt.
The minister said the Federal Government intends to implement a model guaranteeing firm contracts between gas companies and most power-generating companies, adding that the total debt owed by these power-generating companies stands at N1.3 trillion.
He said the ministry has received presidential approval to proceed with payments, contingent upon the reconciliation of outstanding debts between the government and the power generating companies.
