In a bid to address the shortage of gas supply to electricity generation companies in Nigeria, Minister of Power Adebayo Adelabu has advocated for gas payments within the power sector.
The Minister disclosed after a meeting with the Minister of State for Petroleum Resources (Gas), Ekperikpo Ekpe regarding the persistent challenge of insufficient gas supply to power generation firms nationwide. Adelabu explained that the solution lies in facilitating local currency payments.
He said;“proposing domestic gas payment in naira is a key step toward stability, aligning with our economy’s needs and promoting sustainable energy production. Payment shortfalls within the electricity sector pose risks to production and the entire value chain.
“Leveraging my financial sector experience and contacts, I’m working with stakeholders to advocate for legislative measures mandating naira-denominated payments for domestic gas supply.”
The Minister also noted that vandalism of gas infrastructure is another problem facing the power sector, referencing a 2021 NEITI report that recorded around 7,143 incidents of pipeline breakages.
Adelabu stressed the need for clear contractual agreements between Generation Companies (GENCOs) and gas suppliers to ensure a consistent gas supply to mitigate disruptions in electricity production.