CBN settles PHCN legacy debts to gas suppliers

The Central Bank of Nigeria, CBN, yesterday, offset the N36.9 billon legacy debt owed to gas suppliers by the power sector under the defunct Power Holding Company of Nigeria, PHCN, over the last few years.

This debt settled through the CBN was part of the N213 billion intervention funds initiated by the Federal Government to address the hiccups which characterised the posts-privatisastion of the power sector of the economy.

The Minister of Petroleum Resources, Mrs. Diezani Alison Madueke, who disclosed this during the signing of the stakeholders' Memorandum of Understanding, MoU, with the Federal Government in Abuja, explained the intervention was initiated to move the sector forward.

According to her: 'In the last few weeks, the CBN, NERC and Federal Ministries of Petroleum as well as Power, have been collaborating to develop lasting solutions to the challenge of gas supply.

The interventions started with an increase in gas to power price to levels considered more commercial than before and at par with export parity. Gas transmission tariff for gas supplied to power was also increased to reflect commercial rates and enable private investment in infrastructure

Alison Madueke recalled that, 'in our last press engagement, a further intervention aimed at addressing legacy debt owed to the gas sector was also announced.