May 20, 2024
FG slashes Gas to Power price to $2.18
BREAKING: Nigeria’s Bonny Light price hits $70.15 per barrel
– By Godswill Odiong

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By Eyo Nsima

President Muhammadu Buhari, Thursday, said the Fedral Government, has slashed Gas to Power price to $2.18 from $2.50.

President, who disclosed this while declaring open the 2021 Gas Sector Stakeholders (Ajaokuta-Kaduna-Kano, AKK Gas Pipeline Project) Forum held in Kano, said the reduction have been communicated to the relevant stakeholders for compliance
Buhari, who was represented by Minister of state for Petroleum Resources, Timipre Sylva, said: “Following the successful negotiation between the Federal Government and the organized labour unions and the detailed review of the Gas pricing frame work in Nigeria, the price of Gas to power has been reduced from $2.50 to $2.18 with immediate effect.

“The outcome of the negotiation and reviews has been communicated to relevant stakeholders.”
He also, said: “The project is focus in facilitating increase Gas Penetration in the Northern part of the Country, especially the AKK pipeline corridor of FCT, Kano, Kaduna, Kogi,Niger, Nassarawa and other Neighboring states.
“Therefore the forum is geared towards sensitizing the entire northern parts of Nigeria of the upcoming opportunities to bring both new and hitherto moribund companies back to life.

“Kano State alone is dotted with several industrial parks. These and others in other states justify the need to optimize value creation from these industries.
“Experts estimate that it will take at least two to three years to rehabilitate and position these industries for optimal performance. Thus, today’s collaboration with all stakeholders is geared towards kick-starting the required activities that will guarantee full usage of the delivered gas through the AKK pipeline when completed.

“Today’s event reinforces our commitment to realizing the inherent potentials of Gas usage as the National Catalyst for achieving Economic Diversification from Crude oil an transition fuel from fossil fuels of today to the renewable energy of tomorrow.

“It is this commitment that informed our support and commission of two gas powered plants, vessel pipeline operated in Kano State in December 2020 in achieving the uninterrupted delivery of over 30 megawatts of power supply to the industrial hubs.

“Our successful collaboration and the completion of the AKK in 2023 will significantly enhance Mr. President’s vision and current drive for increase domestic gas utilization as the mainstay for national industrialization, increase foreign investment, government revenue growth and ultimately provide more job opportunities for Nigerians.”

Similarly, the Group Managing Director, GMD, Nigerian National Petroleum Corporation, NNPC, Mr. Mele Kolo Kyari, said they were working towards ensuring timely completion of project.
However, Governor Abdullahi Umar Ganduje of Kano State, said the AKK project will help immensely in reviving over 200 lndustries in Kano which have been in slumber for a long time.

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