The Federal government is exploring measures to enhance power generation in the country by prioritizing the allocation of foreign exchange (FX) to power generating companies (Gencos).
Honourable Minister of Power, Mr. Adebayo Adelabu, revealed this during a visit to Egbin Power Plant in Lagos, highlighting the critical role of FX in maintaining and sustaining power generation facilities.
He acknowledged the challenges faced by Gencos, including under-capacity generation due to gas shortages and outstanding debts owed by the government. He assured that efforts are underway to clear these debts, with plans to grant gas suppliers access to gas wells to ensure consistent feedstock supply to power plants.
Furthermore, Mr. Adelabu announced the government’s commitment to priorities payments to Gencos, starting from April 2024, as an incentive to ensure their continued operations.
Discussions with the Ministry of Petroleum (Gas) and gas suppliers are ongoing to address gas supply challenges, with initiatives aimed at resolving outstanding debts and providing financial support to bolster power generation capacity.
