Minister of Power, Bayo Adelabu, In a recent tour of government-managed power plants mentioned the issues crippling Nigeria’s power generation capabilities.
Unpaid debts and a shortage of gas supply have been identified as major contributors to the power plants’ inability to operate at full capacity.
During his visit to the Olorunsogo Power Plant in Ogun State and the Omotosho Power Plant in Ondo State, the Minister expressed his concern over the under-utilization of these facilities, operating at less than 25% capacity. This comes at a time when the nation is grappling with low power generation, exacerbating the energy crisis.
Adelabu attributed the under-capacity utilization primarily to the scarcity of gas supply, emphasizing the need to address this issue to improve operational capacities. He lamented the accumulating debts owed to generation companies, particularly stemming from electricity subsidies.
The Minister suggested a shift towards cost-reflective tariffs, urging the government to fully fund subsidies or consider a migration to a more sustainable tariff structure.
Highlighting the complexity of the debt situation, Adelabu pointed out that both Distribution Companies (DisCos) and the Federal Government are significant contributors to the mounting debts. He stressed the importance of honoring subsidy promises to prevent a further escalation of the liquidity crisis in the sector.
The Minister warned that unpaid debts to gas suppliers could lead to a reluctance in regular gas supply, exacerbating the challenges faced by power plants. Efforts are underway, he assured, to ensure reliable energy sources and address the longstanding power crisis in Nigeria.
