For rising debts profiles, leading gas explorers including Shell and Total have cut off gas supplies to four gas generating (Gencos), thus forcing them to shut down production as a result of their failure to pay gas debts.
It would be recalled that Gencos had been battling without any clear success to recover over N1trillion shortfall traced to debts owed by Discos.
Currently, some of the Gencos have resorted to securing credit facilities from commercial banks to sustain their production, but at very harsh conditions.
Recently, the Executive Secretary, Association of Power Generation Companies (APGC), Joy Ogaji, told newsmen that the power plants shutdown production due to lack of access to take loans.
She said “Some of the GenCos that can access loans have resorted to taking loans to buy gas. Others that don’t have access to such loans are shutting down. Shell and Total have shut down some of the power plants; they want the power plants to pay them.
“From what we got, it is about four plants. Some of them don’t want their names mentioned. You know it is political season now,” Ogaji averred.
