Nigerians To Face Persistent Blackout As Gas Suppliers Vow To Halt Supply Over N3.3tn Debt

Nigerians may experience worsening electricity blackouts as gas suppliers have threatened to halt gas supply to power generation companies due to an outstanding ₦3.3 trillion debt in the power sector.

Reports indicate that the debt crisis between electricity generation companies and gas suppliers has created serious tension in Nigeria’s energy value chain, raising fears of prolonged power outages across the country.

According to industry sources, many gas producers are considering cutting or completely stopping gas supply to power plants because they have not been paid for years of gas delivered for electricity generation. (GTI Research)

Nigeria relies heavily on gas-powered plants for electricity generation, with over 70% of the nation’s power coming from gas-fired plants. Any disruption in gas supply therefore directly affects electricity production and distribution nationwide. (Punch Newspapers)

Recent operational data from the national grid operator also revealed that electricity generation recently fell to about 3,940 megawatts, largely due to inadequate gas supply to thermal power plants. (Punch Newspapers)

Experts warn that if the dispute between gas suppliers and electricity generation companies is not resolved quickly, Nigerians could face persistent power outages and worsening “epileptic” electricity supply.

The power sector has struggled for years with liquidity challenges, unpaid debts, pipeline vandalism, and infrastructure limitations, all of which have contributed to frequent blackouts despite Nigeria having one of the largest natural gas reserves in Africa. (Punch Newspapers)

Businesses and households across the country are already turning to diesel generators and alternative power sources as unreliable grid electricity continues to affect productivity and daily life. (Punch Newspapers)

Industry stakeholders have therefore urged the Federal Government to urgently intervene by settling the outstanding debts and restructuring the electricity market to prevent a full-scale power crisis.

Source: Daily Post Nigeria / Punch Newspapers