President Bola Ahmed Tinubu has ordered the Ministry of Finance to settle the debt owed in respect of gas supplied to the power sector.
He also ordered for the payment of the debt owed the electricity Generation Companies (GenCos) with a payment guarantee.
The Minister of Power, Chief Adebayo Adelabu, said this in Abuja at the ongoing 8th African Energy Market Place with the theme: “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).”
He said that the band A electricity tariff that came to force on April 3, 2024 has reduced the cost of production by 40%.
Adelabu also revealed that with the generation of 700MW from Zungeru hydroelectric power plant, the Nigerian Electricity Supply Industry (NESI) has recorded a new feat of 5,000MW.
He said the supply of electricity has increased due to the implementation of the Electricity Act 2023 and the band A tariff, added that the electricity Distribution Companies (DisCos) are requesting for more load for onward distribution to the customers.
Nigerian Electricity Regulatory Commission, NERC, chairman, Engr Sanusi Garba noted that most of the DisCos are insolvent.