Nigeria faces the threat of a nationwide blackout following a directive by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) instructing gas producers to stop supplying gas to indebted power generation companies (GenCos).
The NMDPRA cited significant unpaid debts as the reason for the halt, noting that the arrears have hampered the ability of gas producers to maintain operations. The authority urged gas off-takers, especially GenCos, to prioritize timely payments for supplied gas to ensure continuity in operations.
Currently, the federal government and some GenCos owe over N2 trillion in legacy debts to gas producers, a situation that has severely strained the gas-to-power value chain.
The directive underscores the dire financial challenges plaguing Nigeria’s power sector, raising concerns about the potential impact on the national grid and electricity supply across the country.
This development was disclosed via the Nigeria National Grid and obtained by The Bureau Newspaper.
