FG Explores Interventions To Stabilise Gas Supply, Power Tariffs

The federal government is actively exploring strategic financial and policy interventions to tackle power tariff challenges and delayed payments that are threatening the operational sustainability of major NNPC-led gas-fired thermal power plants.

This development emerged during a high-level meeting at NNPC Towers in Abuja between Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo; Minister of Finance and Coordinating Minister of the Economy, Wale Edun; and NNPC Ltd leadership led by Dr. Salihu Jamari, representing the EVP Gas, Power and New Energy.

The meeting focused on urgent financial and policy interventions to resolve tariff-related issues impacting the Maiduguri Emergency Power Plant, Okpai Independent Power Plant (IPP) Phase 2, and Kano IPP Phase 1.

The NNPC Ltd team expressed concerns over delayed payments and tariff gaps within the Nigeria Bulk Electricity Trading (NBET) framework, posing operational sustainability risks to these gas-fired power projects.

NNPC Ltd. warned that without timely intervention, power supply to key regions may be jeopardised, with potential economic and social impacts.

RELATED

Reps Okay N1.13trn Customs’ Budget, Want Excise On Telecomm Services, Others Re-introduced

45 minutes ago

CSR: Onne Multipurpose Terminal Commissions Solar-powered Water Project

2 hours ago

Ekpo noted that resolving this bottleneck was critical to ensuring Nigeria’s gas-to-power infrastructure delivers its full value to the economy and the people.

He emphasised the importance of reliable power generation for regional stability and industrial development in Maiduguri, Kano, and increased supply to the National Grid from Okpai Phase 2 IPP.

Finance Minister Edun acknowledged the need for a collaborative approach between all stakeholders to establish a sustainable financial mechanism that ensures the viability of these power plants, while supporting the national grid and economic growth.

All parties agreed to hold a follow-up meeting with the Minister of Power to work towards actionable solutions within a short timeline, focusing on finding a sustainable solution to ensure optimal operation of the affected power plants.