News
FG To Pay N130bn As Part Of Gas Supply Debt – Minister
The Federal Government says it will soon begin the payment of N130 billion as part of gas supply debts in the Nigerian Electricity Supply Industry (NESI).
The Minister of Power, Mr Adebayo Adelabu, said this yesterday at the 2024 Eight Africa Energy Marketplace in Abuja.
The forum was organised by African Development Bank (AfDB), Ministry of Power and the United Kingdom Nigeria Infrastructure Advisory Facility (UKNIAF)
The theme of the forum titled “Towards Nigeria’s Sustainable Energy Future: Policy, Regulation, and Investment – A Policy Dialogue for the National Integrated Electricity Policy and Strategic Implementation Plan (NIEP-SIP)”.
Adelabu said that President Bola Tinubu has approved submission of the Minister of State for Petroleum Resources, (Gas) to defray outstanding debt owed to the gas supply companies to the power sector operators.
The minister said the payments would be in two parts as there is the legacy debt and the current debt.
“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.
“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, ‘’ he said.
Adelabu said the Federal Government planned to adopt a model that would ensure firm contracts between gas companies and majority of the power generating companies.
“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.
Adelabu said that for the power generating companies, the debt is put at N1.3 trillion.
The minister said the ministry of power has the consent of the President to pay on a condition of settling the reconciliation of the debts between the government and the power generating companies.
“And this, we have successfully done, and are being signed off by both parties. Majority has signed off and we are actually engaging others, so we have 100 per cent sign off from the power generating companies.
‘The modalities for paying this will be two ways; there will be immediate cash injection as government is not buoyant enough to pay the N1.3 trillion at once.
“A fraction will be paid in cash, while the remaining fraction will be settled through a guarantee debt instrument, preferably a promissory note, ‘’ he said.
On his part, Mr Sanusi Garba, Chairman, Nigerian Electricity Regulatory Commission, (NERC), said the poor financial state of the Electricity Distribution Company (DisCos ) made it difficult for them to raise the needed capital to invest.
Garba said the challenges facing the sector were a culmination of all past inactions and missteps by those saddled with the responsibilities of managing the sector both at policy and operational levels.
He said, “today when you look at distribution companies, they are clearly and technically insolvent, and you also want them to raise capital in terms of debt or equity.
“It’s a herculean task. I also want to mention that implementing the power sector reform requires very strong political will to implement decisions that impact on the wider public, ‘’ he said.
The Governor of Rivers State, Sir Siminalayi Fubara, has begun the celebration of Nigeria’s 65th Independence anniversary with a Juma’at service where prayers were offered for the progress of the state and Nigeria.
Governor Fubara, who advocated for peace and unity of Nigeria during the prayers on Friday at the Rivers State Central Mosque, Port Harcourt, indicated that without peace, the accelerated development of Nigeria will remain in a limbo.
Governor Fubara, who was represented by Alhaji Abdurrazaq Diepriye, therefore urged citizens to remain patriotic.
According to him, “Allah has brought us this far. Without peace, we can not have progress and economic development. I call on all citizens irrespective of creed or tribe to remain patriotic.”
He thanked President Bola Tinubu for restoring peace in Rivers State while also using the forum to appreciate security agencies for their relentless effort in upholding the peace and unity of Rivers State and Nigeria.
The Chief Imam of Rivers State Central Mosque, Imam Ibrahim Yaloo, admonished Moslem faithful to always speak the truth, adding that those who obey Allah will be directed to good deeds and their sins forgiven.
Prayers were offered for Rivers State and Nigeria.
Other activities to mark the 65th Independence anniversary in the state include an Inter-denominational Church Thanksgiving Service on Sunday, 28th September and Parade Ceremony on Wednesday, 1st October.
Vice-President Kashim Shettima departed New York on Sunday after representing President Bola Tinubu at the 80th session of the United Nations General Assembly.
In a statement released on Sunday by the VP media aide, Stanley Nkwocha, the Vice President is now headed to Germany, where he will hold strategic meetings with officials of Deutsche Bank.
The statement read, “Vice President Kashim Shettima has departed New York, United States, after successfully representing President Bola Ahmed Tinubu, GCFR, at the 80th Session of the United Nations General Assembly.
“During his participation at UNGA 80, VP Shettima secured UN Secretary-General António Guterres’ commendation for Nigeria’s bid for a permanent UN Security Council seat.
“He also showcased Nigeria’s $200 billion energy transition opportunity to global investors and strengthened strategic partnerships with the UK on trade, defence, and migration issues.”
Nkwocha added that the VP delivered Tinubu’s national statement, calling for UN reforms and a permanent seat for Nigeria at the UN Security Council, and “demanded Africa’s control over its $700 billion mineral wealth, and digital inclusion initiatives.”
“He also engaged with the Gates Foundation on healthcare and education expansion, positioning Nigeria as the natural hub for the African Continental Free Trade Area’s $3.4 trillion market.
“VP Shettima was seen off at John F. Kennedy International Airport, New York, by cabinet Ministers who were part of the UNGA 80 delegation and Nigerian Mission officials.”
The aide noted that Shettima will return to Nigeria immediately after his engagements in Germany.
The Tide source recalls that the VP departed Abuja, yesterday.
He led other Nigerian officials at the Assembly.
As part of Nigeria’s 65th Independence anniversary celebration, the Federal Government held a special thanksgiving service on Sunday at the National Ecumenical Centre in Abuja to offer prayers and give thanks for the nation.
The event drew top government officials and security chiefs, including Senate President Godswill Akpabio and Secretary to the Government of the Federation, George Akume, as well as their spouses.
Other notable guests included Finance Minister and Coordinating Minister of the Economy Wale Edun, former Plateau State Governor, Senator Simon Lalong, and the Chief of Defence Staff, General Christopher Musa, who led the service chiefs in attendance.
Service chiefs present included the Chief of Naval Staff, Vice-Admiral Emmanuel Ogala, Inspector-General of Police Kayode Egbetokun, Comptroller-General of the Nigerian Immigration Service, Mrs Kemi Nandap and Controller-General of the Nigerian Correctional Service, Sylvester Nwakuche, among others.00
The service came days after the government unveiled the official theme and some of the activities slated for the 2025 Independence celebrations.
This year’s anniversary is tagged “Nigeria @ 65: All Hands on Deck for a Greater Nation,” as announced by the Director of Information and Public Relations at the Office of the Secretary to the Government of the Federation, Segun Imohiosen, in a statement on Wednesday.
“As part of activities to mark the 65th Independence Anniversary, the Juma’at Prayer and the Inter-Denominational Church Service will be held on Friday, 26th September at 1 pm and Sunday, 28th September at 10 am respectively, as well as the World Press Conference on Monday, 29th September at 10 am,” he said.
The Tide source had earlier reported that President Bola Tinubu, alongside former Heads of State, Yakubu Gowon, Olusegun Obasanjo and Goodluck Jonathan, is expected as a special guest at a national discourse convened by the Island Club, Lagos, to mark Nigeria’s 65th Independence Anniversary.
-
Opinion16 hours ago184 Days of the Locust in Rivers State
-
News15 hours agoFG moves to avert fuel supply crisis, promises stability
-
City Crime15 hours agoIndustry Braces For Glut And Investor Demands
-
News15 hours ago“PenCom Raises Capital Requirement For PFAs To N20b …Sets December 2026 Deadline
-
Sports16 hours agoEzeji Urge NFF To Investigate Igenewari George’s death
-
Niger Delta15 hours ago
D’Gov Hails Amananaowei-Elect, Ogboloma Chiefs Council …Wants Accountability, Transparency In Traditional Administration
-
Sports16 hours agoGroup Plan To Discover Africa next football stars
-
News15 hours agoMake in Nigeria conferences and Exhibitions; PHCCIMA, others laud organisers for boosting SMES