The Federal Government has announced plans to promptly disburse N130 billion to settle outstanding gas supply debts within the Nigerian Electricity Supply Industry (NESI). This announcement was made by the Minister of Power, Adebayo Adelabu, at the 2024 Eighth Africa Energy Marketplace held in Abuja on Thursday.
According to the Minister, the payment will be made in two phases: a cash payment of N130 billion from the gas stabilisation fund, which the Federal Ministry of Finance will facilitate, and a legacy debt payment plan totaling $1.3 billion (approximately N780 billion) to be settled through future royalties and income exchanges in the gas sub-sector.
The government aims to encourage gas companies to enter into firm supply contracts with power generating companies, ensuring consistent power generation. With this payment plan, gas companies will be under contractual obligation to supply gas to power generating companies, promoting a more stable electricity supply industry.
This development is expected to positively impact the Nigerian Electricity Supply Industry, addressing the long-standing issue of gas supply debt and promoting a more sustainable energy sector.