The federal government is considering a targeted tariff relief initiative to address gas supply and payment structure challenges at key NNPC-led thermal power plants.
This was the product of a high-level meeting at NNPC Towers in Abuja between Minister of State for Petroleum Resources (Gas), Rt. Ekperikpe Ekpo; Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; and NNPC Ltd leadership led by Dr. Salihu Jamari, representing the EVP Gas, Power and New Energy.
The meeting also focused on urgent financial and policy interventions to resolve tariff-related issues impacting the Maiduguri Emergency Power Plant, Okpai Independent Power Plant (IPP) Phase 2, and Kano IPP Phase 1.
The NNPC Ltd team expressed concerns over delayed payments and tariff gaps within the Nigeria Bulk Electricity Trading (NBET) framework, posing operational sustainability risks to these gas-fired power projects. NNPC Ltd. warned that without timely intervention, power supply to key regions may be jeopardized, with potential economic and social impacts.
Ekpo noted that resolving this bottleneck was critical to ensuring Nigeria’s gas-to-power infrastructure delivers its full value to the economy and the people.
He emphasized the importance of reliable power generation for regional stability and industrial development in Maiduguri, Kano, and increased supply to the National Grid from Okpai Phase 2 IPP.
The Finance Minister, Wale Edun, acknowledged the need for a collaborative approach between all stakeholders to establish a sustainable financial mechanism that ensures the viability of these power plants, while supporting the national grid and economic growth.
All parties agreed to hold a follow-up meeting with the Minister of Power to work towards actionable solutions within a short timeline, focusing on finding a sustainable solution to ensure optimal operation of the affected power plants.
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