Adeosun denies cancellation of PPAs with solar plant developers

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The Minister of Finance, Mrs. Kemi Adeosun said yesterday that the reported cancellation of the Power Purchase Agreements (PPAs) signed by the Federal Government with project developers in the solar energy sector is false, Daily Trust reports.

She noted that the Nigerian Bulk Electricity Trading (NBET) had the primary role of negotiating with project developers and signing PPAs. “However, as the primary obligor of all forms of guarantees issued by all governments of the federation and their agencies, the Federal Ministry of Finance through the Debt Management Office, must estimate the size of obligation that it is willing and able to accommodate in relation to the power sector,” she said.

“Furthermore, the Ministry is required to evaluate the country’s repayment capacity for current and contingent debt obligations as part of its Debt Sustainability Analysis (DSA), which is a key requirement for sound Public Debt Management practice. These liabilities have wider implications for the country’s debt and overall fiscal position in the medium to long-term,” she added.

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