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Business - July 13, 2023

Power sector gas debt hits $1bn


The legacy gas debts of the power sector to gas suppliers in Nigeria had risen to about $1bn, as efforts were ongoing to finalise the figures and find a comfortable way in addressing the debts, according to media report.

Though, a new gas pricing template for the power sector and gas-based industries has been developed and currently awaits the approval of President Bola Tinubu, the Nigerian Midstream, and Downstream Petroleum Regulatory Authority announced on Wednesday.

Speaking during the inauguration of the Decade of Gas Secretariat in Abuja, the secretariat’s Coordinator, and immediate past President, of Nigeria Gas Association, Ed Ubong, said it was important for the government to clear the gas debts in order to boost investors’ confidence in gas investments.

The Decade of Gas is an initiative of the Federal Government that seeks to deepen domestic gas usage across the country within a 10-year period, from 2021 to 2030, based on the enormous gas reserves in Nigeria that stood at over 206 trillion cubic feet.

The programme’s secretariat, which was inaugurated on Wednesday, was currently located in the Abuja headquarters (annex) of the Nigeria Midstream and Downstream Petroleum Regulatory Authority.

Speaking to journalists on why legacy power sector gas debts should be addressed, Ubong said, “It is clear to us that we need to provide comfort to investors by clearing the arrears that the gas companies are owed, particularly for gas supply to power.

“That is a key priority, at least you heard from the Special Adviser to the President on Energy speak about it, that it is also part of the work that is ongoing and should be completed.”

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