By Melvin Onwubuke
The Federal Government has paid $120 million, from the $1.3 billion debt to gas companies, for supply to run gas-powered plants across the nation.
This was disclosed by Ed Ubong, The Director, Decade of Gas Secretariat, during the ongoing 7th Nigeria International Energy Summit in Abuja on Thursday.
Ubong expressed his delight, that the Federal Government had cleared $120 of the $1.3 billion gas debt to gas companies.
The Decade of Gas Secretariat is under the Federal Ministry of Petroleum Resources (Gas).
In view of the fact that Nigerians do not pay correct price for electricity, the Federal Government subsidises electricity.
Ubong said “As of last year, that (gas debts) was about $1.3bn, depending on how you add up the numbers. But I am pleased that between October and the end of January, the government has paid over $120m to offset some of that money.”
Recall, the Power Minister, Adebayo Adelabu, disclosed recently, that the crash in power and the epileptic power supply since January was because suppliers stopped supplying gas, for the generation of electricity as a result of debt owed to the gas producers.
Nigeria gets more than 70 per cent of its electricity from thermal power plants that run on gas, while the rest comes from hydropower generating plant.
