…Nigeria can’t solve power problems if gas issues are not resolved
…gas producers can’t be convinced to supply gas when they are owed huge money
Stakeholders in the Power and Gas sectors have said that Nigeria cannot solve power problems if the gas issues are not resolved.
According to them, the country must also have a stable fiscal regime for Power and Gas, and not an ad-hoc one that every time a new government comes after another would come and tamper, thereby making the whole policy unsustainable.
They also advocated that the government should encourage investors to invest in infrastructure as the current infrastructure is obsolete and weak to perform the desired services required in the sector. This is just that they want the government to take critical looks at the None Associated Gas (NAG).
The stakeholders who spoke at a private sector forum Titled: “State of the Nigerian Economy in Hi: Review and Medium- Term Outlook,” organized by the Nigeria Economic Summit Group (NESG) agreed that unless Nigeria resolves the issue of debts in the power sector, She may not get any improvement or investment in the sector.
Audrey Ezeigbo, Managing director of Falcon Group, said no investors would want to put down their money if these issues are still prevalent in the sectors. Investment will not come to the sector if these issues are resolved.
In her view, a fiscal policy that will bring down the cost of electricity must last at least, between 20 to 25 years which is being changed along the line that will not change.
“We cannot tell with a lot of confidence that investment would flow into the sector. Distribution companies need to invest in their infrastructure such as transformers and distribution lines.
The ability to get data from the distribution companies, they stated, is very important because integrated data planning is needed in the market
Another speaker from Shell Petroleum Development Company that represented the managing director of SPDC, Osagie Okunbor said without the debts in the power sector resolved, it will be impossible for those who produce gas to be convinced to supply gas for power because they are not paid for the services they have rendered.