The Federal Government said it is planning on strategic measures to tackle the issues surrounding power tariffs that impact gas supply and payment frameworks at major thermal power plants spearheaded by the NNPC.
The Federal Government made this known during a high-level meeting between Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo; Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; and NNPC Ltd leadership led by Dr. Salihu Jamari, representing the EVP Gas, Power and New Energy at NNPC Towers in Abuja.
The discussions 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.
NNPC Ltd. articulated apprehensions regarding postponed payments and tariff discrepancies within the Nigeria Bulk Electricity Trading (NBET) framework, which threaten the operational viability of these gas-fired power initiatives.
NNPC Ltd. cautioned that absent prompt intervention, the electricity provision to vital areas could be imperiled, leading to possible economic and social repercussions.
The Minister of Gas, the Hon. Ekpo stated that addressing this bottleneck is vital to ensure Nigeria’s gas-to-power infrastructure yields its maximum benefit for the economy and its citizens.
Hon. Ekpo underscored the significance of dependable power generation for regional stability and industrial advancement in Maiduguri and Kano, as well as enhancing supply to the National Grid from Okpai Phase 2 IPP.
Also, the Finance Minister, Edun called 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 convene a subsequent meeting with the Minister of Power, aiming to devise practical solutions within a brief timeframe, with an emphasis on discovering a sustainable strategy to guarantee the optimal functioning of the impacted power plants.