Minister of Power, Chief Adebayo Adelabu has clarified his position on subsidy in the power sector, explaining that he did not advocate removal of subsidy, but canvassed a clear cut policy to address the illiquid issues in the sector.

In a statement yesterday by his Special Adviser, Strategic Communication and Media Relations , Bolaji Tunji, “What he said was that if the government was subsidising power, it should be backed up with payment.”

According to Tunji, “There is a need to correct the erroneous impression going around quoting the Minister of Power, Adebayo Adelabu as advocating removal of subsidy in the power sector.

Tunji, also disclosed that Adelabu, at the weekend met with top management teams of power Generating companies (GENCOs) and Distribution companies (DISCOs) in a bid to find lasting solution to blackout in some parts of the country said, “The meeting also discussed issues of indebtedness to GENCOs by the Nigeria Bulk Electricity Trading Company (NBET).

“We are aware that the sector has liquidity challenge, but we need to have a minimum threshold, we are working on revalidating the debt and determining a fair resolution.

Adelabu spoke further on the need by GENCOs to enter a contractual arrangement with gas suppliers to ensure steady supply of gas to generating companies. “ We know that there are certain concessions expected of government before this could be achieved and we are willing to work on this to stabilize the power sector, he assured.

To resolve the gas impasse and the liquidity issue, the Minister assured that a committee would be set up comprising all stakeholders to come up with appropriate recommendations.

“To tackle the gas supply and liquidity challenges, I’ve decided to form a committee involving all stakeholders. Together, we will work on recommendations to resolve these issues and ensure a more reliable and consistent power supply for our citizens.

A plan has also been established to initiate discussions with the Minister of State for Petroleum Resources regarding collaboration and to emphasize to the Ministry the importance of prioritizing Gas to Power.

“Our commitment is unwavering in addressing the challenges affecting power supply. We understand the impact on citizens, and our goal is to swiftly resolve the issues of gas supply, indebtedness, and overall sector stability. Your patience is appreciated as we work collaboratively towards a brighter, more reliable energy future for Nigeria”. (Vanguard)

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