Nigerians are grappling with widespread power outages following the suspension of natural gas supply to power generation companies (GenCos) due to mounting debts. Gas producers, under instruction from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), halted supply to GenCos as unpaid debts surged from N2tn earlier this year to N2.7tn.
Dr. Joy Ogaji, CEO of the Association of Power Generation Companies (APGC), has confirmed the suspension during an interview with the Punch, stating that gas suppliers have formally notified GenCos of their decision. “They have halted the supply. The total debt has increased to over N2.7tn,” Ogaji noted, emphasizing that 70% of thermal GenCos’ expenses are gas-related.
Earlier this year, the Federal Government pledged to begin offsetting the debts. Minister of Power, Adebayo Adelabu, announced in April that the government had allocated N205bn towards these payments and promised further actions. Despite this, ongoing disputes over a 0.5% wholesale price levy mandated by the Petroleum Industry Act have exacerbated tensions between regulatory bodies and gas suppliers.
But the crisis has led to the 12th collapse of Nigeria’s national power grid this year, plunging the country into darkness. At its peak, power generation was 4,013 megawatts, which dropped to 0 megawatts after the grid failure at 1:36 pm on Wednesday.
Distribution companies confirmed the outage, with Jos Disco and Abuja Distribution Company issuing statements attributing it to the grid collapse. Gradual restoration efforts are underway, though full stabilization remains uncertain.
Consumer advocate Kunle Olubiyo, President of the Nigeria Consumer Protection Network, called for an independent forensic audit of the debt claims. He criticized the mismanagement and lack of accountability in the sector, highlighting inefficiencies in the current public-private partnership model.
“The market should be administered like a business. If we do proper follow-ups, it’s likely that 75% of these bills have been inflated. The government should fully privatize the sector to eliminate corruption,” Olubiyo said.
The NMDPRA denied issuing a directive to halt gas supply. In a statement, it labeled reports as “false and unfounded,” emphasizing that recent engagements with stakeholders aimed to enhance gas supply and distribution, especially during the festive season.
Experts suggest that resolving the power sector’s financial and operational inefficiencies requires urgent reforms, stricter accountability mechanisms, and a fully privatized framework. Until then, the burden of unpaid debts and operational challenges continues to impact millions of Nigerians.
The ongoing crisis underscores the need for a sustainable approach to power generation and distribution, as the nation faces increased economic and social hardships due to energy instability.
Read Also: Again, National grid collapses, Making It 12th time in 2024
Agency Report
PIJAlance Magazine, is an independent public-centric journalism arm of PIJA Foundation that stands to tell stories connecting the masses to community justice and development. We always rebel against social injustice. Got a story you'll like us to publish, tip us in contact us.