The Minister of Finance supports liquidity in the energy sector

ABUJA – Minister of Finance and Coordinating Minister for Economy, Mr Wale Edunstressed the importance of liquidity in the energy sector as a key solution needed to stabilize the struggling industry.

This announcement follows the announcement by the Managing Director for… Delta Niger Power Holding Company (NDPHC), p. Chiedu UgboThat Calabar Power Generation Company is the highest-efficiency power plant in the country, with seven fully operational power plants feeding the national grid.

The appeal to ensure liquidity in the energy sector was emphasized by the Minister of Finance during his testimony before the investigative committee examining the controversial Make-up gas (MUG) Reprocessing agreement with the participation of the Ministry of Finance, NDPHC, Calabar Generation Company LimitedAND Acugas limited liability company.

The minister pointed out that the gas supply agreements concluded between… NDPHC and ACUGAS Limited were inherited by the current administration led by the former president Muhammadu Buhari in 2015, even though it was originally signed in 2011, during the term of office of the President Good luck, Jonathan.

Stating that neither Ministry of Justice neither the Ministry of Finance was initially involved in these contracts, the Minister emphasized the continuity of the government’s actions in this matter, and the Ministry of Finance is currently working to ensure the necessary liquidity.

Details of cooperation with Nigerian liquefied natural gas (NLNG) to address liquidity challenges, the Minister highlighted efforts to terminate the long-term contract agreement through a deed of transfer as NLNG pays for gas in dollars.

He explained that Make-up gas The ownership structure (MUG) includes Calabar, which is owned by NDPHC, ultimately owned by the Federal and State Governments, with the Federal Government owning 52.68% of the shares.

During his testimony, NDPHC Managing Director, Chiedu Ugboemphasized the company’s use of gas supplies from Acugas limited liability companyenabling power generation from the Calabar power plant to feed into the national grid, making it the most efficient power plant in the country.

Ugbo mentioned the construction of an 80-kilometer gas pipeline to facilitate the use of GUMed at the Calabar and Alaoji power plants, although challenges such as system transition issues and concerns over frequency and voltage have hampered the desired results.

The chairman of the committee, Senator Enyinnaya Abaribe (APGA Abia South), expressed gratitude to the stakeholders for their comments, but stressed that the investigation was ongoing.