N110b debt cripples gas producers

N110b debt cripples gas producers

The President, Nigerian Gas Association (NGA), Dada Thomas yesterday lamented that players in the gas industry are running out of cash as a result of the N110 billion debt customers are owing gas producers. Thomas, who is also the Managing Director, Frontier Oil Limited, spoke to reporters at the ongoing NGA conference in Abuja.

He said the intervention of the Central Bank of Nigeria (CBN) to gas producers was still negligible because all the electricity generation companies (GenCos) in the country operating thermal plants depend on gas. He said: “ Every session (in this conference) has talked about the liquidity in the power sector and that liquidity is virtually terminal. By terminal, it means the patient is already collapsing and if pushed a little bit, that’s its end. The problem in that sector needs to be fixed. Gas producers are owed more than N110 billion right now.

“The CBN intervention was just a drop in the ocean. So we have a serious problem. It is important to state that all GenCos who run thermal plants in Nigeria get their gas from gas producers. You can’t run a thermal power plant without gas.” Read more

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