The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has dismissed claims that it instructed wholesale gas suppliers to cut off supply to power-generating companies (GENCOs) over outstanding payment defaults.
The controversy arose after the Nigeria National Grid tweeted on Wednesday, warning of a looming electricity blackout due to an alleged NMDPRA directive linked to over ₦2 trillion in legacy debts owed by the federal government and GENCOs to gas producers.In an official statement, NMDPRA labeled the claims as baseless, clarifying that no such directive was issued, including during its recent stakeholder engagement in Lagos.
“The publication circulating is completely unfounded,” the Authority said, assuring stakeholders of the uninterrupted supply of natural gas to GENCOs. NMDPRA emphasized its commitment to ensuring a steady energy supply, especially during the festive season and into 2025.
Nigeria’s power sector continues to grapple with liquidity challenges and underinvestment, particularly due to unpaid debts. GENCOs have repeatedly called on the government to address over ₦2 trillion in outstanding electricity debts, which they say threaten the sector’s sustainability.
In recent months, the government has taken steps to alleviate these issues:
- May 2024: ₦130 billion allocated to settle part of the ₦1.3 trillion gas supply debts in the Nigerian Electricity Supply Industry (NESI).
- August 2024: Minister of Power, Adebayo Adelabu, announced ₦205 billion had been paid to GENCOs as part of efforts to improve liquidity in the sector.
The government’s ongoing debt settlements aim to stabilize the power sector and ensure reliable electricity for Nigerians.
As NMDPRA reassures stakeholders of seamless gas distribution, addressing systemic inefficiencies and accelerating debt settlements remain crucial to resolving Nigeria’s power generation challenges.
