Trillions of power sector debt crippling our operations, declares NGA

*Businesses no longer sustainable in view of current realities of Coronavirus pandemic ─President, Nigerian Gas Association

Alexander Davis | ConsumerConnect

The Nigerian Gas Association (NGA) has voiced the frustration of its members to deliver in respect of current crises rocking the power sector in the country.

It was learnt that stakeholders in the country’s gas-to-power value chain have decried the mounting debt profile in the power sector of the economy.

Mrs. Audrey Joe- Ezigbo, President, Nigerian Gas Association related the challenges of her members involved in supply of gas to power plants during a webinar seminar the Association organised, titled: “Using Natural Gas as a Roadmap for Nigeria’s Recovery, Growth and Prosperity” recently.

Other participants in the webinar seminar are CEO of Seplat, Mr. Austin Avuru, Managing Director of Nigerian Gas Company (NGC), Engr. Oluwaseyi Omotowa, Managing Director, Nigerian Gas Marketing Company (NGMC), Mr. Mohammed Ahmed, Independent Energy Consultant, Dr. Lawrence Ijebor and Managing Director of Gas Invest, Dr. David Ige.

Mrs. Joe-Ezigbo lamented that some of its members supplying gas to power plants were yet to be settled for invoices submitted since September 2019, which she said were in several trillions of Naira.

The NGA President said: ‘‘I do not have the exact numbers as of today, but what I can tell you that from our members who are gas suppliers, I am talking about several trillions with many of the invoices not settled for quite a while.

“None has been settled this year, while we have some that have not been paid as far back as last September.

‘‘How can you survive running a business without being paid for services delivered over 10 months ago?

“Some of our members are just doing this as a national sacrifice which she said is no longer sustainable in view of current realities occasioned by the Coronavirus pandemic’’

She also decried the payment mode, which she disclosed are sometimes settled in trickles of about 30 percent of invoice value, leaving the outstanding to spill over till a later date, saying this does not connote a sustainable measure.

Some of these actions on the part of the power sector have led to the declaration of force majeure by gas suppliers, said she.

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