Nigeria’s electricity supply is on the brink of collapse as gas suppliers have halted fuel delivery to thermal power plants over an outstanding debt of approximately N3.3 trillion.
The Association of Power Generation Companies (APGC) warns that this move will worsen the nationwide power shortage, affecting households and businesses already grappling with erratic electricity supply.
The debt, which has ballooned to N6.8 trillion, is owed to gas suppliers and transporters, with thermal plants accounting for 70% of Nigeria’s grid power. Gas suppliers have formally notified generation companies that they will no longer deliver gas until payments are cleared.
The Nigerian Independent System Operator (NISO) reports that thermal plants are receiving only 40% of required gas volumes, around 650-700 million standard cubic feet daily, against a need of over 1,600 mmscf.
The Minister of Power, Adebayo Adelabu, has acknowledged the issue and is working with the Minister of State for Petroleum (Gas), Ekperikpe Ekpo, to resolve the situation.
However, industry stakeholders warn that urgent intervention is needed to prevent widespread blackouts. ⁵
Would you like to know more about the government’s plan to address this crisis or the impact on households and businesses?
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