Bayo Adelabu, the Minister of Power, revealed that unpaid debts and low gas supply are hindering the operational capacity of power plants in Nigeria. During his visit to the Olorunshogo Power Plant in Ogun State and the Omotosho Power Plant in Ondo State, he expressed dismay at their underutilization.
The minister’s nationwide tour of government power plants managed by the Niger Delta Power Holding Company aims to assess their physical and operational state. Adelabu noted that both plants operate at less than 25% capacity, contributing to the nation’s ongoing power generation challenges.
Adelabu attributed the low capacity utilization to gas supply shortages and outstanding debts owed to the generation companies. He highlighted the need for repairs, support, and increased gas supply to enhance operational capacity and improve nationwide power supply.
Furthermore, he urged the government to fully fund electricity subsidies to reduce the accumulating debts and avoid disruptions in gas supply. Adelabu emphasized the significance of addressing liquidity issues and transitioning to cost-reflective tariffs if subsidies are not fully funded.
He also recognized the debts owed by Distribution Companies (DisCos) and the government’s responsibility in funding the subsidy. Adelabu assured that comprehensive efforts are underway to enhance power availability for Nigerians through reliable energy sources.
