The President of the Nigeria Gas Association, Mr. Dada Thomas has said that the current pricing regime of gas and uncertainty of contract in addition to infrastructure deficits are reasons militating against nation’s power sector development.
Addressing journalists on the fourth coming NGA International Gas Conference and exhibition, scheduled for Abuja in October, this year, the NGA President stated, “The gas pricing is not right and that is why when we run the margin with the current price of $2.50 benchmark to the power sector one cannot make enough profit. “The real deal is that, we should allow the free market to come into play. Let willing buyer and willing seller negotiate the terms, rather than current government pegged pricing.”
He said, “On debts in the power sector, I do continue to lament about payment. That was why we met with the Minister of Power, Babatunde Fashola, in 2016 which culminated in the introduction of payment assurance guarantee initiated by the Federal Government through the Central Bank of Nigeria, CBN.” Also, Vice President, NGA, Mrs. Audrey Joe-Ezigbo, added, “On the N701 billion payments, in 2017, only 26 percent was disbursed. It is currently about 27.6 percent.” She added, “As much as it pays for us to be talking about solar and other renewable energy, the easiest way to ramp up our power is through gas and we don’t have adequate infrastructure in place. That infrastructure will not be developed if pricing does not make sense. We need to put adequate infrastructure in place and for that to happen, we would need to pay high price.”
Photo: Google Images