Nationwide Blackout Looms As NMDPRA Stops Gas Supply To Gencos’ Over N2tn Debts
2 years ago 2 min read
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As a result of growing debt, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has ordered gas producers to stop supplying gas to power generation firms (GenCos), potentially resulting in a nationwide blackout of energy.
In a statement released on Wednesday on its official X (formerly Twitter) account, Nigeria National Grid revealed that the gas supply halt is due to more than N2tn in unpaid bills owed to gas producers by the Federal Government and other GenCos.
NMDPRA noted that the large debts had significantly limited the ability of gas producers to continue operations.
The oversight agency asked gas off-takers, especially the GenCos, to ensure prompt payment for gas supplies to prevent further disruptions.
“An electricity blackout is imminent following NMDPRA’s directive to gas producers to stop supplying gas to indebted GenCos,” the post read. “NMDPRA emphasized that the significant debts owed to producers have hindered their ability to sustain operations. It called on gas off-takers, particularly GenCos, to make timely payments.”
THE WHISTLER recalled that the debt crisis has persisted despite recent efforts by the Federal Government to reduce the financial burden on the power sector.
In June 2024, GenCos warned that the continued non-payment of over N2tn in legacy debts could jeopardize the stability of electricity generation.
In response, the government, led by Minister of Power Adebayo Adelabu, announced in August that N205bn had been paid out of the N1.3tn owed to GenCos, as part of efforts to boost liquidity in the sector.
Additionally, in May 2024, the government allocated N130bn to settle a portion of gas supply debts within the Nigerian Electricity Supply Industry (NESI).
