Home Business Energy Blackout: FG Blames Gas Shortage, Vandalism, Okays N40bn For Discos
Energy

Blackout: FG Blames Gas Shortage, Vandalism, Okays N40bn For Discos

Share
Share

The Federal Government on Wednesday said the recent power outages experienced nationwide were as a result of a gas shortage, vandalism, and other factors which were being currently addressed.

It also said the collapsed power grid was back in shape and efforts were underway to restore power on the grid.

The Minister of Power, Abubakar Aliyu, disclosed this while fielding questions from State House correspondents at the end of the Federal Executive Council Meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.

Aliyu said, “The more reason we are facing the situation now is as a result of the shortage of gas and some of the generators have to go for maintenance. It is scheduled maintenance and it is supposed to be a scheduled outage but we had not envisaged that we will have issues around vandalism of pipelines which the NNPC has addressed.

“It is a combination of many factors. That compounded the problem we are having on the grid. We have recovered the grid now. The grid is back and we are trying to get more megawatts to push on the grid.

“We have set up small committees all geared towards getting more megawatts to put on the grid. Basically, the problem around gas. You need to have a gas contract between generating companies and gas suppliers; some are in form of contracts, some are not. We are looking into this and have proffered some solution.”

He also disclosed that FEC had approved N5bn for payment for the right-of-way to expand transmission in Lagos and Ogun states.

“And I also told you that we are encountering a lot of challenges on right-of-ways. But we have gotten approval now for over N5bn, to open up and expand Lagos, Ogun, where presently they may not be enjoying quality electricity.

“So, we need to do this more. We have not denied that the transmission is not strong to carry the load. Otherwise, we have over 13,000 installed capacity at the Gencos. But we have been able to wheel only 5000MW.”

Aliyu also said the government did not have any form of disagreement with power-generating companies over funds.

“On the gas issue, this should be one of them. So, we are trying to solve all the problems. For instance, just last time, I told you the debts owed by the government to Discos. I told you we are paying for that. We are paying around N40bn.”

Also speaking, the Minister of Industry, Trade and Investments, Niyi Adebayo, said FEC approved the construction of a new corporate headquarters for the National Sugar Development Council in Abuja, in favour of Vita Construction Limited to the sum of N5,756,833,616 with a completion period of 24 months.

The Minister of State for Works and Housing, Muazu Sambo, said the council approved the implementation of two road projects and two bridges in different parts of the nation.

They include the realignment of the Kano state border, Birnin Kudu-Bauchi state border Road in favour of Triata Nigeria limited, which would cost a total sum of N10,133,856,109.

Source Punch

Share

Businesstoday Magazine

Businesstoday Conference/Awards

Related Articles

Boost For Nigeria’s Oil Production, As NNPC’s Utapate Crude Grade Hits Global Oil Market

…As OML 13 Asset Eyes 80,000 bpd by End of 2025  ...

NNPC Ltd Announces 1.8mbpd Production, Eyes 2mbpd by Year End

The Nigerian National Petroleum Company Limited (NNPC Ltd) and its partners have...

NNPC Ltd Announces Key Appointments 

The Board of Directors of NNPC Limited has announced strategic leadership appointments....

NNPC Ltd Set To Supply 100mmscf/d Gas To Dangote Refinery

L-R: Managing Director, Nigeria Gas Marketing Limited (NGML), Barr. Justin Ezeala and...