Oredola Adeola
Amid a significant decrease in power allocation to the eleven electricity distribution companies (DisCos), Adebayo Adelabu, Minister of Power, has formed a Power Committee to address the issue, attributing the decline to unpaid debts and low gas supply, with the current allocation standing at 3,011.00 MegaWatts.
Adelabu made this known in a statement he shared on his X handle, emphasising that the root cause of the power crisis was discovered after investigations and crucial discussions with power Generating companies (GENCOs) and Distribution companies (DISCOs) on Thursday.
The Minister’s reassurance to mitigate the impact of gas shortages and unpaid debts on power generation and distribution companies, is coming in the wake of low power supply being witnessed across the country.
As of the latest report on Friday, power supply to the 11 electricity distribution companies in Nigeria has decreased to 3,011.00 MW due to a shortage of gas, with varying allocations to different regions.
Abuja Disco received 464MW, Benin Disco received 247MW, Eko Disco got 390MW, Enugu Disco -got 217MW, and Ibadan Disco received 363MW.
Ikeja Disco received 458MW, Jos Disco – 171MW, Kaduna Disco -196MW, Kano Disco- 204MW, Port Harcourt Disco – 215MW, and Yola Disco received 86MW.
The Power Minister emphasized that after thorough investigations and discussions with key industry players, it became evident that the insufficient gas supply to GenCos is the root cause of the power crisis.
Adelabu hinted that addressing the gas supply issue is now the top priority and has announced the formation of a committee involving all stakeholders to tackle this challenge.
He also noted that despite improvements in power supply during the yuletide, setbacks have been experienced in the new year.
The Minister stated that during the meeting with the stakeholders that was organised to address the ongoing issue of blackouts in parts of our country, he made a decision to form a committee involving all stakeholders. being parts of measures to tackle the gas supply and liquidity challenges.
Adelabu further explained that he visited some of the power plants in Olorunshogo, Ogun State, and Omotosho, Ondo State to understand the challenges firsthand.
He said, “During our meeting, we also addressed the indebtedness to GENCOs by Nigeria Bulk Electricity Trading Company (NBET). While acknowledging the sector’s liquidity challenge, we are working on validating the debt and determining a fair resolution.
“I emphasized the importance of GENCOs establishing contractual arrangements with gas suppliers to ensure a steady gas supply. Recognizing concessions may be needed, I assure you that we are committed to working on this to stabilize the power sector.
“To tackle the gas supply and liquidity challenges, I’ve decided to form a committee involving all stakeholders. Together, we will work on recommendations to resolve these issues and ensure a more reliable and consistent power supply for our citizens.
“A plan has also been established to initiate discussions with the Minister of State for Petroleum Resources regarding collaboration and to emphasize to the Ministry the importance of prioritizing Gas to Power,” Adelabu said.
The Minister of Power affirmed the government’s unwavering commitment to addressing the issues impacting power supply in Nigeria.
He also acknowledged the adverse effects on citizens and expressed the government’s determination to promptly resolve the challenges related to gas supply, outstanding debts, and the overall stability of the sector.
Adelabu therefore urged the public to exercise patience as the government collaborates towards a brighter and more dependable energy future for Nigeria.
