By Akinsuroju Olubunmi
Egbin Power plant faces gas shortage, N1.4tn FG debt crisis
The Chief Executive Officer of Egbin Power Plc, Mokhtar Bounour, has expressed grave concerns over the current gas shortage plaguing the power sector, posing a significant threat to nationwide power generation.
Bounour made this assertion during a press briefing on Thursday following a visit by the Minister of Power, Adebayo Adelabu, to the Egbin Power Plant in Ikorodu, Lagos.
Highlighting the challenges faced by the power generating company, Bounour emphasized that the plant’s inability to operate at full capacity is primarily due to the insufficient supply of gas. Despite its capacity to generate 1,000MW, the plant now struggles to produce an average of 400MW due to the gas shortage.
In a closed-door meeting with the minister, Bounour outlined the critical issues affecting Egbin Power Plant and expressed hope for gradual solutions to improve the situation.
He particularly highlighted the scarcity of gas as a major challenge, citing ongoing technical issues faced by gas suppliers. Bounour stressed the urgent need for increased gas allocation to sustain operations and mitigate revenue losses.
Additionally, Bounour raised concerns about the mounting debt owed to Egbin Power Plc by the Federal Government, amounting to N1.4tn. He underscored the importance of resolving these liquidity issues promptly to ensure the sustainability of the business.
Despite the challenges, Bounour expressed optimism that improvements would be witnessed from April onwards, following assurances from the minister. However, he emphasized the critical importance of addressing the outstanding debts to maintain the viability of the power sector.
Egbin Power Plant, Gas Shortage