Transnational Corporation of Nigeria Plc has suspended plans to build one of the nation biggest power plants amid gas shortage and a downturn in the nation economy that is hindering efforts to raise funds for the project.
The company in 2014 said it would raise $1bn to build a 1,000-megawatt gas-fired facility. Two years earlier, it bought the Ughelli plant in Delta State from the Federal Government and more than doubled its output to 700MW.
Attacks on pipelines by militant groups have cut gas supplies to power stations in recent times and forced millions of Nigerians to either do without electricity or buy fuel for their generators.
Also, a dollar shortage blamed on a 15-month currency peg removed on June 20 has raised import prices and inflation, with the economy contracting in the first quarter.
The Chief Executive Officer, Transcorp, Emmanuel Nnorom, was quoted by Bloomberg to have said in an interview, “How do you make the investments when you are generating far below your current capacity due to gas problems?”