President Muhammadu Buhari has decried the gas supply insecurity to the power sector in the country, despite the fact that Nigeria has one of the largest gas reserves in the world.
Buhari stated this yesterday when he inaugurated the Afam 3 Fast Power Station, owned by the Transafam Power Limited, at Okoloma-Afam community in Oyigbo local government area of Rivers State.
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The president, who was represented by Vice President Yemi Osibanjo, said the insecurity in gas supply was hampering reforms in the power sector.
He said, “Despite having one of the largest gas reserves in the world, gas supply security for the power sector has been inconsistent and it is hampering reforms.
“In 2022, a gas supply stabilisation fund of N40 billion was established by the Nigerian Electricity Regulatory Commission (NERC) to provide advanced payment security for all gas supply and electricity supply industries.
“Consistently, gas supply in the power sector had claimed payment certainty was greatest challenge for supply. Unfortunately, payment decided has not led to improved supply security.”
In his address, the chairman of Transcorp Group, Mr Tony Elumelu, said the Afam 3 Fast Power Station was made up of eight trailer-mounted gas turbines and has capacity to generate 240 megawatts of electricity.
Elumelu called on the federal government to resolve the gas supply challenge facing power supply companies operating in the Niger Delta region.
Earlier, Rivers State governor Nyesom Ezenwo Wike, described the station as one of the federal government’s presences in the state.
Wike, who was represented by the head of service (HoS), Rufus Godwins, said apart from being the hub of oil and gas sector, Rivers State contributes 40 percent to the national grid.