FG Plans Intervention as Rising Debts Threaten NNPCL Power Plants
The Federal Government says it is considering strategic interventions to address power tariff challenges affecting gas supply and payment structures at key thermal plants owned by the Nigerian National Petroleum Company Limited.
This development emerged during a meeting at the NNPC Towers in Abuja between the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo; the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun; and the leadership of the NNPC, led by Dr Salihu Jamari, who represented the Executive Vice President, Gas, Power and New Energy.
According to a statement by the media aide to the gas minister, Louis Ibah, on Wednesday, the meeting focused on urgent financial and policy interventions to resolve tariff-related issues impacting the Maiduguri Emergency Power Plant, Okpai Independent Power Plant (IPP) Phase 2, and Kano IPP Phase 1.
It was learnt that the NNPC Ltd team “expressed concerns over delayed payments and tariff gaps within the Nigeria Bulk Electricity Trading framework, posing operational sustainability risks” to the gas-fired power plants.
“NNPC Ltd warned that without timely intervention, power supply to key regions may be jeopardised, with potential economic and social impacts,” the statement read.
Ekpo noted that resolving this bottleneck was critical to ensuring Nigeria’s gas-to-power infrastructure delivers its full value to the economy and the people. He emphasised the importance of reliable power generation for regional stability and industrial development in Maiduguri, Kano, and increased supply to the national grid from Okpai Phase 2.
Speaking, the Finance Minister, Edun acknowledged the need for a collaborative approach between all stakeholders to establish a sustainable financial mechanism that ensures the viability of these power plants, while supporting the national grid and economic growth.
“All parties agreed to hold a follow-up meeting with the Minister of Power to work towards actionable solutions within a short timeline, focusing on finding a sustainable solution to ensure optimal operation of the affected power plants,” the statement concluded.
The Nigerian power sector has been facing liquidity issues caused largely by power subsidies and a lack of metering. While the Federal Government promised to subsidise electricity for Nigerians except those in Band A, the Minister of Power, Adebayo Adelabu, said the government could no longer afford a N200bn monthly subsidy.
The inability of the Discos to recover enough costs is affecting the value chain, leading to billions of dollars owed to power generation companies and gas companies.
