A power sector expert, Mr Adetayo Adegbemle, has called on the Federal Government to allow GenCos to buy gas in Naira.
NewsNGR reports that the Federal Government had implemented an initiative to sell crude oil to Dangote Refinery in Naira to stem the rising price of PMS.
Adegbemle, who spoke exclusively to NewsNGR in Abuja on Tuesday, however, declared that the sale of gas to
Gencos in Naira would lead to a low in the price of electricity tariff.
To this end, he also called on the government to extend VAT removal to gas as done to diesel and other various energy products.
NewsNGR recalls that the Federal Government last week announced value-added tax (VAT) exemptions for various energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles, among others, to reduce prices.
Adegbemle, who is the Convener and Executive Director of PowerUp Nigeria, a consumer rights and power sector policy advocacy organization, however, called for the intervention of the Minister of Power, Chief Adebayo Adelabu and other power sector stakeholders.
He said, “Meanwhile, with the government agreeing to sell crude oil to Dangote in Naira, shouldn’t all Gencos be buying gas in Naira now too?
“I think the Minister of Power and SA Energy should both be asked this question, especially as it benefits every Nigerian.
“The new FG initiative removed VAT from cooking gas and others, but I noticed Gas2Power is not covered.
Shouldn’t the Association of Power Generating Companies and the Ministry of Power also be getting in on the show?
“Carry-over effect would also at least help in reducing electricity tariff, or what do you think? The VAT Removal should also be extended to Gas2Power.
“If Dangote Refinery can be buying Crude oil in Naira, then Gencos should also be allowed to pay for gas in Naira, which also reflects on lower electricity tariff”.