Tinubu Govt To Revoke Meter Contract From Foreign Company

Tinubu Govt To Revoke Meter Contract From Foreign Company. During a visit by the Senate Committee on Power to the Ministry of Power in Abuja, Minister Adebayo Adelabu indicated that the government is considering revoking a meter contract awarded to a foreign company called Zigglass Limited.

Adelabu disclosed that the federal government had provided Zigglass Limited with $200 million (equivalent to N32 billion) to supply three million meters, yet the meters have not been delivered as of date.

President Bola Tinubu directed that the contract be revoked and awarded to a competent company.

Expressing concern over the delay, Adelabu questioned the absence of interest accrued on the N32 billion over the years.

He emphasized the government’s commitment to closing the eight million metering gap within the next four to five years, with funding sourced from a seed capital of N100 billion and N75 billion provided by the Nigerian Sovereign Investment Authority (NSIA).

Adelabu highlighted the challenges posed by gas suppliers who have withheld further supply due to the federal government’s outstanding debts.

He noted that the government owes generation companies over N1.3 trillion and gas suppliers $1.3 billion, urging lawmakers to address the debt issue.

Nafisat Ali, Executive Director of the Independent System Operator (ISO), echoed Adelabu’s concerns, stating that gas shortages have become a major constraint in the industry.

Despite the power shortage in the country, DisCos are still rejecting load allocations, exacerbating the situation.