Gas Suppliers Halt Supply Over N3.3tn Debt, Threaten Nigeria’s Power Generation
The Chief Executive Officer of the Association of Power Generation Companies, Dr. Joy Ogaji, disclosed the development, warning that the situation could significantly worsen the country’s already fragile electricity supply.
Ogaji explained that the mounting debt owed to gas producers has made it increasingly difficult for them to continue supplying gas to thermal power plants, which generate a large portion of Nigeria’s electricity.
According to her, the suspension of gas supply could lead to a reduction in power generation capacity, thereby worsening the persistent nationwide power shortage experienced by homes and businesses.
She noted that unless urgent steps are taken by relevant authorities to address the financial obligations within the power sector, more generation companies may be forced to scale down operations.
Industry stakeholders have repeatedly raised concerns about liquidity challenges in Nigeria’s electricity market, with power generation companies struggling to meet payment obligations to gas suppliers and other service providers.
Experts warn that if the crisis is not resolved quickly, it could further strain the country’s power sector, affecting economic activities and increasing reliance on alternative sources of energy such as generators.
