Power minister eyes CBN FX allocation to ramp up sector’s capacity

. Commences Gencos’ debt payment from April

AMIDST several challenges confronting the power sector, including limited access to critical resources, the Minister of Power, Adebayo Adelabu, has unveiled plans to liaise with the Central Bank of Nigeria ( CBN) to prioritise foreign exchange ( FX) allocation to the sector in ramping up its generating capacity.

He revealed the plans during his official visit to Egbin

Power Plant, yesterday, where he noted that FX sourcing has been a major constraint to effective maintenance of the plant’s facility.

Adebayo emphasised that after assessing the critical requirement for spare parts and maintenance tools, he would engage with CBN to prioritise FX allocation to the sector to enhance the industry’s capacity for electricity generation by ensuring adequate resources are available.

"It's not only peculiar to Egbin Power Plant but also across all the generating plants. They need forex for them to be able to maintain the turbines and replace the tools and the spares, this has been a major issue, and I'm going to take a step to ensure I liaise with the foreign exchange authority in CBN to see how they can prioritise FX allocation," he said. Addressing the outstanding debts owed to the Generating Companies ( Gencos), the minister highlighted the significant amount owed by the Federal Government, with Egbin Power Plants leading the list of creditors.

He emphasised the importance of preventing these debts from hindering the operations of the power- generating companies, noting that despite the financial challenges, Egbin Power Plant has demonstrated generosity by sustaining operations, and avoiding potential shutdowns.

Adelabu, who disclosed that the Federal Government is making the repayment of outstanding debts a priority, assured the management of Egbin Power Plant that starting from April, payments would commence as a form of incentive and encouragement to ensure their continued operation.

"Gas constraints have been an impediment to almost all the power plants and we already had a conversation with the Minister of Petroleum and we are also meeting with the gas suppliers to plead with them, have an understanding that the Federal Govt is prepared to start paying down on the debt that we owe the gas supplier companies