Tinubu Government Set To Cancel Meter Deal With Foreign Company

Tinubu Government Set To Cancel Meter Deal With Foreign Company....KINDLY READ THE FULL STORY HERE▶

The possibility of rescinding a meter contract awarded to a foreign entity named Zigglass Limited has been hinted at by the Federal Government. Minister of Power, Adebayo Adelabu, disclosed this during a visit by members of the Senate Committee on Power to the Ministry in Abuja on Monday.

Adelabu revealed that despite the government’s disbursement of $200 million (equivalent to N32 billion) to Zigglass Limited for the supply of three million meters, the company has yet to fulfill its obligation. President Bola Tinubu, according to Adelabu, has instructed the revocation of the contract, advocating for its reassignment to a more competent firm.

Expressing concern over the unutilized funds, Adelabu questioned the absence of accrued interest on the N32 billion over the years. He outlined the government’s commitment to bridging the current metering deficit of eight million units within the next four to five years, utilizing a combined seed capital of N100 billion and N75 billion, with support from the Nigerian Sovereign Investment Authority (NISA).

Furthermore, Adelabu highlighted challenges within the energy sector, citing the reluctance of gas suppliers to fulfill their obligations due to outstanding government debts. He emphasized that the government owes generation companies over N1.3 trillion and gas suppliers $1.3 billion, urging lawmakers to address this issue urgently.

Nafisat Ali, Executive Director of Independent System Operator (ISO), echoed concerns regarding gas shortages, identifying it as a major impediment in the industry. Despite the power deficit in the country, Ali noted that Distribution Companies (DisCos) continue to reject load allocations, exacerbating the challenge.

The situation underscores the pressing need for effective management of contracts and debts within the power sector to ensure uninterrupted energy supply and address metering deficiencies.

For more information join our WhatsApp group by clicking the link here: WhatsApp Group Invite