The Minister of Power, Adebayo Adelabu, has mooted the idea of creating legislative measures to ensure gas payments are made in naira in the power sector.
The minister stated this on his official X handle after a meeting with the Minister of State for Petroleum Resources (Gas), Ekperikpo Ekpe on the issue of shortage of gas supply to electricity generation companies across the country.
According to the minister, delivering enough gas supply to generation companies has been an issue and local gas payment can solve the supply issue.
He stated, “Proposing domestic gas payment in naira is a key step toward stability, aligning with our economy’s needs and promoting sustainable energy production. Payment shortfalls within the electricity sector pose risks to production and the entire value chain.”
“Leveraging my financial sector experience and contacts, I’m working with stakeholders to advocate for legislative measures mandating naira-denominated payments for domestic gas supply.”
The minister also noted that vandalization of gas infrastructure is another problem facing the power sector referencing a 2021 NEITI report that recorded around 7,143 incidents of pipeline breakages.
He further noted that from now on there will be clear contractual agreements between GENCOs and gas suppliers to ensure a steady gas supply to generation companies.
