Nigeria says it will have a generation capacity of at least 5000 megawatts of electricity by the end of 2014.
The Minister of Petroleum, Mrs Deziani Allison-Madueke said this at a Joint press briefing with major policy makers in Abuja.
New modalities to boost power generation for economic development especially with regards to the use of gas, were also discussed in a meeting with stakeholders.
Mrs Allison-Madueke said one of the interventions to curb the challenge of gas supply to both power and non-power sectors was the implementation of a new gas price to reflect market value.
"The Ministry of Petroleum Resources and the Nigerian Electricity Regulatory Commission are in deliberations to finalise work to ensure that the pricing mechanism of gas to power will reflect market value'’
"It is anticipated that this will quickly boost gas supply and in turn power output. In the medium to long term, this new price regime should trigger additional investment in the infrastructure for gas to power," she added.
Meanwhile, the Nigerian Electricity Regulatory Commission has approved a new benchmark price of $2.50 (N323) per million cubic feet for gas supply and 0.8c per million cubic feet as transportation costs for new capacity from 2014.
The Minister of Petroleum Resources said on-going gas supply projects such as the Utorogu field expansion, Ogben gas plant, re-entry of the Odidi field would increase gas supply by 370mcf/d.
She expressed optimism that it would translate to achieving a total of 5000megawatts inclusive of hydro within four to five months.
She however warned that due to maintenance of all gas plants between August and September, there might be a temporary disruption in gas to power supply.
In order to encourage stakeholders in the gas sector, the Governor of Central Bank of Nigeria, Mr Godwin Emefiele pledged to clear the debt owed gas suppliers.
He said “the CBN will support initiatives to clear up the most recent gas related debts of the power sector, specifically, the CBN is looking at banking sector-led measures to pay off N25 billion of debts owed to gas suppliers."
The Minister of Power, Professor Chinedu Nebo stated that the collaboration of the Nigerian Ministry of Petroleum Resources, the Ministry of Power, the Nigerian National Petroleum Corporation, the Nigerian Electricity Regulatory Commission and the Central Bank of Nigeria would achieve a more stable supply of gas to power which will translate to stable power supply to Nigerians.
It is hoped that with the intervention of the stakeholders in the Energy Sector, Nigeria will experience a significant improvement in both gas and power supply by 2015.