The Federal Government of Nigeria has made significant progress in addressing the debt owed to gas suppliers, with a payment of N1.23 trillion out of the total N3.3 trillion debt. This disclosure was made by the Minister of Power, Joseph Tegbe, during a briefing with State House correspondents after the Federal Executive Council meeting, presided over by President Bola Tinubu. The meeting took place at the Council Chamber of the State House in Abuja.
According to Minister Tegbe, the payment is part of the government's efforts to resolve liquidity and debt challenges in the power sector. These challenges have constrained the supply of feedstock gas to generation companies, affecting the overall performance of the sector. The Minister emphasized that the government is committed to finding solutions to these issues, which have hindered the optimal performance of the power sector.
The Minister of Power also highlighted the government's plans to optimize existing assets in the sector and build long-term resilience into the national grid. This will be achieved through targeted investment in transmission infrastructure, which is expected to upgrade the current transmission capacity. The goal is to expand transmission capacity from the current 5,000 megawatts to approximately 19,000 megawatts.
The government's investment in transmission infrastructure aims to enhance the reliability and efficiency of the national grid. By building resilience into the grid, the government hopes to ensure a stable power supply across the country. Minister Tegbe stressed that upgrading transmission capacity is crucial to meeting the increasing demand for electricity and supporting economic growth.
The power sector has faced significant challenges in recent years, including liquidity and debt issues, which have impacted the supply of feedstock gas to generation companies. The government's efforts to address these challenges are expected to have a positive impact on the sector's performance. The Minister's disclosure suggests that the government is making progress in resolving these issues.
The Federal Executive Council meeting, presided over by President Bola Tinubu, discussed various issues related to the power sector and the economy. The meeting provided a platform for ministers to brief the President on the progress of their respective portfolios. The Minister of Power's disclosure on the debt payment and plans for transmission infrastructure upgrade was a significant highlight of the meeting.
The government's commitment to resolving the debt challenges in the power sector is expected to have a positive impact on the economy. A stable power supply is essential for economic growth, and the government's efforts to upgrade transmission infrastructure will help to enhance the reliability and efficiency of the national grid. The Minister's statement suggests that the government is taking concrete steps to address the challenges facing the power sector.
Key points
- The Federal Government has paid N1.23 trillion out of the N3.3 trillion debt owed to gas suppliers.
- The government plans to expand transmission capacity from 5,000 megawatts to approximately 19,000 megawatts.
- The payment and planned investments aim to resolve liquidity and debt challenges in the power sector.
