The Federal Government is to provide the sum of 213billion naira to the newly privatised power companies to facilitate the settlement of legacy debts worth 36billion naira and the settlement of shortfalls in gas supply to power plants.
The Minister of Petroleum Resources, Deziani Alison-Madueke, made the pronouncement at a world press conference she addressed on the efforts of government towards improving gas to power and electricity supply in Nigeria.
According to her, this provision, among other measures, would boost investor confidence and increase power stabilisation to 5000 megawatts in 2015.
She rose from addressing the unions over the recent fuel queues in the country which she said has been settled, to address the press on the progress made to give Nigerians steady power supply.
She enumerated the problems to include inadequate gas, electricity tariff issues and reduced income due to shortfall in revenue. She said that only the newly privatized companies have borne the brunt since handover in November 2013.
The solution, going forward, is the bail out.
She said that the private sector who are now in control would repay in ten years and that they must ensure that a minimum quantum of electricity produced by the generating companies get to the distribution companies. She also spoke about the security of the gas pipelines and measures put in place to mitigate the problems facing it.
The Chairman of Nigerian Electricity Regulatory Commission, NERC, Dr Sam Amadi, explained how the companies got to accumulating the debt from 25billion to 36billion naira. He also gave the guarantee that there would be no more debts.
The Federal Government believes that the recent measures would reset the power sector and Nigerians expect that there would be a better picture by the time they address the next press conference on power supply.