keyboard_backspace

4mo
African Economy
Gas Producers Express Frustration Over N2.7 Trn Gas Debt By Government
Oyeleke Banmeke
Frustration is crippling into operations of indigenous gas companies in Nigeria over uncertainty as to when Government will offset huge debt on gas supplied by the firms.
The legacy debt reportedly standing at over N2.7 trillion is linked to gas produced by the companies and sold to electricity generation companies (GenCos).
Worried by uncertainties about when they will receives their money, the producers under the aegis of the Independent Petroleum Producers Group (IPPG) made the plea during a meeting with the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, on Tuesday.
The delegation led by its chairman, Abdulrazaq Isa, urged the Minister to address the challenges facing gas producers in Nigeria.
As of December 2024, it was reported that the Federal Government and some power generation companies owed over N2.7 tn in legacy debts to gas producers in Nigeria.
Earlier in 2024, the gas companies stopped supplying the GenCos due to mounting debt, plunging the country into weeks of darkness.
The Federal Government promised to offset the debt gradually, but the producers are still begging for attention.
The IPPG Chairman, Isa, “solicited the intervention of the Federal Government to resolve issues around key areas like gas pricing, gas flare penalty, legacy debt, gas infrastructure, gas supply receivables, and LPG availability to encourage upstream investment and move the sector forward,”.
However, Isa thanked President Bola Tinubu for appointing members of the group into key positions in the Nigerian National Petroleum Company Limited and the Organisation of the Petroleum Exporting Countries.
He also commended Ekpo for the strides achieved so far in the gas sector.
Speaking, Ekpo lauded IPPG for the role they play in the gas value chain, noting that as indigenous investors, they not only create jobs in the country but also plough their profits back into the economy to support the nation and Tinubu’s Renewed Hope agenda in repositioning the energy sector for sustainable development.
The Minister pledged the Federal Government’s support in resolving the challenges affecting the group’s operations and called for enhanced collaboration between the group, the government, and regulatory Agencies to foster growth and development.
The chairman was accompanied by other IPPG members, including Chief Executive Officers of oil and gas companies such as Dada Thomas of Frontier, Gbite Falade of Aradel, Lanre Kalejaiye of ND Western, and Dapo Filani of Waltersmith Petroman.
Others are officials of companies like Trost Amos of Renaissance Africa, Chikaodili Okoye and James Makinde of Seplat Energy, Sunday Okunbor of ND Western, Nkiruka Ajah of Waltersmith, and Oyeleke Banmeke from the IPPG Secretariat
0
0
share
Read more from Torty