Electricity blackout looms as gas producers reportedly halt supply to GenCos over unpaid N2 trillion debt.
An electricity blackout may soon hit Nigeria following a directive from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) instructing gas producers to stop supplying gas to power generation companies (GenCos) over unpaid debts.
The Authority explained that significant debts owed by GenCos have crippled the ability of gas producers to sustain operations. It urged gas off-takers, particularly power companies, to make timely payments for gas already supplied.
According to Leadership, the federal government and several GenCos currently owe gas producers over N2 trillion in legacy debts.
Farouk Ahmed, Chief Executive Officer of NMDPRA, disclosed this during a stakeholder sensitisation workshop on wholesale supply operations in Nigeria.
He said that gas producers had been directed to suspend supplies to defaulting gas receiver companies. The issue was further highlighted by Emmanuel Cofie-Spiff of Oando, who revealed that only 28% of the gas supplied to off-takers had been received.
He said this situation has placed significant financial pressure on the company, with little support from the Authority to enforce payment.
However, Ahmed dismissed this claim, asserting that the Authority had responded to complaints by instructing affected gas producers to halt supplies until outstanding payments were cleared.
