Politics

FG Considering Fresh Subsidy For Gencos As Gas Price Hikes By 30%

FG Considering Fresh Subsidy For Gencos As Gas Price Hikes By 30%

FG Considering Fresh Subsidy For Gencos As Gas Price Hikes By 30%

There are strong indications that the federal government is considering a fresh subsidy for the electricity generation companies to cushion the effects of the recent hike in gas price by the producers.

Eighty per cent of Nigeria’s power plants are powered by gas.

This has made it impossible for the federal government to look away from their plights.

Currently, the GenCos are owed over N1 trillion by the electricity distribution companies through Nigerian Bulk Electricity Trading (NBET).

The Niger Delta Power Holding Company (NDPHC) alone is owing a whopping sum of N198 billion. The company is the largest generation company in Nigeria with 4,000MW to the national grid.

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