The Federal Government has announced plans to promptly initiate the disbursement of N130 billion to settle outstanding gas supply debts within the Nigerian Electricity Supply Industry (NESI).

The statement was made by the Minister of Power, Adebayo Adelabu, during the 2024 Eighth Africa Energy Marketplace held in Abuja on Thursday.

He said, “For the current debt, approval has been given for a cash payment of about N130 billion from the gas stabilisation fund which the Federal Ministry of Finance will pay.

FG Okays Adelabu’s Power Ministry’s Plan to Install Power Equipment, More Energy Sources to Aid Electricity Supply

“The payment for the legacy debt is actually going to be made but from future royalties and exchange of incomes in the gas sub-sector which is quite satisfactory to the gas supply companies.

The last figure was about 1.3 billion dollars and this payment, we believe, will go a long way to encourage these gas companies to enter into firm supply contracts with the power generating companies.” Adelabu added.

“The day they cannot supply gas, there is no penalty but once there is a firm contract, they will be under contractual obligation to supply gas to these power generating companies so that we have a consistent power generation.”