April 16, 2024

We assure Egbin of improved gas supply, commitments to pay FG indebtedness- Minister


Adebayo Obajemu

The Minister of Power, Adebayo Adelabu has given assurances of the readiness of the current administration to pay its indebtedness to Egbin Power Plc, beginning from next month, noting that the Management of the power company has done well.

He gave this promise Thursday during his visit to Egbin power as part of his routine consultations and visits to power companies and power installations across the country in an effort to improve understanding among power ecosystem, with overall intention of improving power supply in the country and fostering understanding among stakeholders.

He stated that he was at Egbin to deepen conversation on how to turn around the declining power supply, and have useful discourse with the Management. The Minister commended Egbin new owners for robust investments in infrastructure which have impacted on overall efficiency, in spite of liquidity and gas challenges, adding that he could hardly recognize Egbin Power Station he visited years back as a consultant.

He noted that Egbin Power Plc which was established in 1984 has witnessed tremendous growth and made huge contribution to electricity supply in the country in spite of huge challenges, such as low gas and liquidity issues as a result of huge indebtedness to it by the government.
He said that he has had useful conversation with the management regarding Federal Government’s huge indebtedness to it, promising that the Tinubu administration will begin to offset the indebtedness as from April.
On the difficulties expressed by energy companies in accessing FX , the Minister disclosed that already he has had useful talks with Central Bank and other stakeholders on how to prioritize energy companies in terms of access to foreign exchange.

On gas shortages, he noted that the Ministry is already talking to gas suppliers giving them assurances of commitments to begin paying them as from April, saying that the impact of these efforts will begin to be felt as from next month.
On the sidelines of the Minister’s visit, Mr. Mokhtar Bounour the Chief Executive Officer of Egbin Power Plc told journalists that he was highly impressed by the visit of the Minister, saying Mr.Adelabu has given assurances that the government will look into the N1.4 trillion it’s owing Egbin Power Plc. He noted that the plants are facing challenges, especially the issue of gas shortages.

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