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Wholesale gas-producing companies have formally notified all power generation companies of the suspension of natural gas supply.
This was disclosed by the Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, during an interview with Punch.
The suspension of the gas supply is due to the non-payment of debts accrued from previous supplies.
The gas supply was allegedly halted after the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) instructed gas producers to suspend the delivery of natural gas to indebted GenCos until further notice, citing the escalating debts.
The situation has led to a nationwide electricity blackout, severely impacting power generation across the country.
Currently, over 70 per cent of Nigeria’s power is produced by gas-fired power plants.
While the government has in the past few months paid ₦205bn of the debt owed to the GenCos, an ongoing disagreement between the NMDPRA and gas producers on who should collect the 0.5 per cent wholesale price levy imposed on petroleum products by the Petroleum Industry Act made the suppliers demand the payment of monies owed.
Speaking on the situation, Ogaji stated that all relevant authorities, including the presidency, have been notified of the current situation and are awaiting the necessary interventions.
She added that debt, which hovered around ₦2tn earlier this year, has increased to ₦2.7tn.
She said, “It is no longer a matter of NMDPRA giving a directive. They have already stopped the supply of gas to power-generating companies.
“They (gas suppliers) have halted the supply. They have already informed our gencos that they are not going to be supplying gas anymore until what is outstanding is settled and it didn’t happen today.
“We have told the Nigerian Electricity Regulatory Commission, they are already aware of the situation. There is nobody who would say they are not aware; the minister is aware, and the presidency is aware.
“The total debt has now increased to over N2.7tn and you know that 70 per cent of thermal Gencos invoice is gas.
“They have been paying a small amount. So, when they pay us nine per cent, we just calculate nine per cent of our gas invoice and send it to the gas supplier because that is the only way to survive. We are all sharing in the poverty that NBET is giving us.”
