A deepening crisis has gripped Nigeria’s power sector as wholesale gas producers abruptly halted the supply of natural gas to power generation companies (GenCos) due to a staggering accumulation of unpaid debts. This drastic measure has plunged the nation into widespread blackouts, exacerbating the already precarious electricity situation and raising concerns about the stability of the energy sector.
The alarming development came to light through an exclusive interview with Dr. Joy Ogaji, the Chief Executive Officer of the Association of Power Generation Companies (APGC). She revealed that gas producers took the unprecedented step of suspending gas supply after receiving instructions from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The NMDPRA reportedly cited the escalating debt owed by GenCos as the reason for their directive, ordering gas producers to cease deliveries until further notice.
This situation has thrown the nation’s power generation capacity into disarray. With gas-fired power plants responsible for generating over 70% of Nigeria’s electricity, the sudden halt in gas supply has triggered a domino effect, leading to significant power shortages across the country. Businesses, homes, and essential services are all grappling with the consequences of these widespread blackouts.
The debt owed by GenCos to gas producers has reached a critical level, soaring to N2.7 trillion, a significant increase from the N2 trillion reported earlier this year. This financial burden has become a major point of contention between the two parties, with gas producers demanding immediate payment before resuming supply.
Adding fuel to the fire is an ongoing dispute between the NMDPRA and gas producers over the collection of a 0.5% wholesale price levy on petroleum products, as stipulated by the Petroleum Industry Act. This disagreement has further complicated the situation and contributed to the gas producers’ insistence on full debt settlement.
Despite recent efforts by the government to address the debt issue, paying down N205 billion owed to GenCos, the gas producers remain resolute in their demand for complete payment. The APGC has notified all relevant authorities, including the presidency, about the gravity of the situation and is anxiously awaiting intervention.
However, the lack of swift action has sparked fears of prolonged power outages and their potential to cripple economic activities. The disruption to businesses, industries, and essential services could have far-reaching consequences for the nation’s economy and the well-being of its citizens.
Compounding the crisis, the national power grid experienced yet another collapse on Wednesday, the 12th such incident this year. This recurring instability highlights the fragility of Nigeria’s power infrastructure and the urgent need for comprehensive reforms to ensure reliable electricity supply.
Industry experts and consumer advocates have expressed concerns about the transparency of the debt figures and called for an independent forensic audit of the claims made by gas producers. They also urge the government to accelerate the full privatization of the power sector, believing that this will foster greater accountability and efficiency within the industry.
Adding to the confusion, the NMDPRA has issued a statement denying any involvement in directing the suspension of gas supply to GenCos, contradicting the information provided by the APGC. This conflicting information has further clouded the situation and created uncertainty about the path towards resolving this crisis.
As Nigeria grapples with this energy emergency, the lack of clear communication and coordinated action among stakeholders threatens to prolong the blackouts and deepen the economic impact on businesses and citizens alike. The urgent need for a comprehensive and transparent approach to address the debt crisis and stabilize the power sector has become more critical than ever.
About the author
Robert Prevost’s Unexpected Path to the Papacy
Tonight, from the Vatican, a stunning development that will reverberate across the Catholic world. The College of Cardinals, in a move that has surprised many, has reportedly chosen Robert Prevost as the successor to the papacy. A figure perhaps less known on the global stage than some of the speculated frontrunners, Robert Prevost's ascent marks a potentially significant turning point for the Church. Robert Prevost, an American prelate who has been serving as the Prefect of the Dicastery for Bishops, a crucial Vatican department responsible for recommending candidates for bishoprics worldwide, is now poised to take on the monumental task of leading over a billion Catholics. His background, notably his long service as a missionary in Latin America, particularly in Peru, offers a compelling narrative of a life dedicated to the pastoral needs of the faithful in the developing world. […]
Civilian Lives Lost Amidst India-Pakistan Retaliation
Tonight, from the volatile Line of Control that divides India and Pakistan-administered Kashmir, we are receiving deeply concerning reports of civilian casualties following a dangerous escalation of tensions. This after Pakistan's response to India's earlier air strikes manifested in cross-border shelling, leaving a trail of destruction and loss in its wake. Consider the human cost. Buava Singh, a resident of the Poonch district on the Indian side, recounted a devastating scene. A mortar shell, he says, ripped through his niece Ruby Kaur's home in the dead of night. She had simply woken to prepare tea for her ailing husband when tragedy struck. The shrapnel, Singh described, caused fatal head wounds. Ruby Kaur is now dead, and her daughter gravely injured. Adding to the vulnerability, Singh stated the absence of community bunkers in the area, forcing civilians to seek the fragile […]
Inter vs. Barcelona Delivers a Champions League Semi-Final for the Ages
Wow. Just wow. If you missed the Champions League semi-final between Inter and Barcelona, what were you even doing? Because what we just witnessed here in the Inter vs. Barcelona match, folks, was not just a game of football. It was an experience. A three-and-a-half-hour odyssey, punctuated by a staggering 13 goals, a trio of substitute stampedes onto the pitch, and then, almost poetically, as if the heavens themselves were moved by the sheer drama, the rain began to fall. It felt like a cleansing, a baptism after two sides had poured every single ounce of themselves onto that hallowed San Siro turf. We were in a realm beyond strategy boards and tactical formations, a place where pure will and heart collided. This wasn't your typical Champions League semi-final; it was an elongated scream of passion, the kind of spectacle […]
Northampton Shocks Leinster to Reach Champions Cup Final
Well, tonight in Dublin, at the hallowed RDS Arena, we witnessed a seismic shift in the landscape of European rugby. A script no one truly predicted unfolded as Northampton Saints, against all expectations, delivered a jaw-dropping 37-34 defeat to the mighty Leinster, punching their ticket to the Investec Champions Cup final. Consider this: Leinster, the perennial contenders, the standard-bearers of defensive prowess in this competition, had conceded a mere seven tries en route to this semi-final. Seven. Tonight, the Saints, with a relentless attacking fury, breached that seemingly impenetrable wall five times. Five tries, including a hat-trick of blistering scores from the electrifying Tommy Freeman. This was not just a victory; it was a drama of epic proportions. Ten tries were scored in a breathless encounter, a seesaw battle that kept us on the edge of our seats until the […]
Osimhen Eyes New Scoring Landmark as Galatasaray Battles Sivasspor
Tonight in Istanbul, under the floodlights of Rams Park, Victor Osimhen, the undeniable engine of Galatasaray's Super Lig title aspirations, stands on the precipice of a significant personal achievement. The Nigerian international, a force of nature at 26 years old, currently leads the league's scoring charts with a formidable 22 goals, a testament to his predatory instincts in front of the net. He holds a slender two-goal advantage over Istanbul Baลakลehir's Krzysztof Piatek. While the collective glory of a Super Lig triumph undoubtedly fuels Osimhen, the heart of a striker beats with the rhythm of individual milestones. Tonight's encounter against Sivasspor offers him a golden opportunity to not only widen the gap on his nearest rival but also to etch his name further into the annals of his own impressive career. Consider this: Osimhen has already tallied a staggering 31 […]
UFC Legend Mark Kerr’s Dramatic Life Story Comes to Screen with Dwayne Johnson in Lead Role
UFC pioneer Mark Kerr's tumultuous journey through the early days of mixed martial arts is set to captivate audiences in the upcoming biopic "The Smashing Machine," featuring a transformed Dwayne Johnson in what many are calling his most dramatic role to date. Kerr, now 56, earned his intimidating nickname "The Smashing Machine" through his devastating fighting style during MMA's formative years, when fighters often competed multiple times in a single night. The Ohio native's remarkable career included four first-round stoppage wins at UFC 14 and UFC 15 in 1997, with his longest bout lasting just 133 seconds. However, the film delves beyond Kerr's octagon dominance to explore his harrowing struggle with painkiller addiction, which culminated in a life-threatening overdose in 1999. The biopic draws inspiration from the acclaimed 2002 HBO documentary of the same name that chronicled Kerr's rise, fall, […]
Related
US and UK Reach Limited Trade Deal While 10% Tariffs Remain
President Donald Trump and British Prime Minister Keir Starmer announced a limited bilateral trade agreement on Thursday that maintains Trump's 10% tariffs on British exports while expanding agricultural access and reducing steep US duties on British automobile exports. The "general terms" agreement marks the first of numerous tariff-adjusting deals Trump expects to finalize in the coming weeks. It follows his implementation of new import taxes aimed at addressing the $1.2 trillion US goods trade deficit. Trump celebrated the deal in the Oval Office with Starmer connected via speakerphone. US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer prepared to launch negotiations with Chinese officials in Switzerland. Trump emphasized that Britain "made a good deal" but cautioned that other trading partners might face higher final tariffs due to their large US trade surpluses. "It opens up a tremendous market […]
US and Britain Set to Announce Historic Tariff Reduction Deal
The United States and Britain are preparing to announce an agreement to lower tariffs on certain goods on Thursday, marking the first such deal since President Donald Trump implemented worldwide tariffs. Trump announced on Truth Social that he would hold an Oval Office news conference at 10 a.m. EDT Thursday regarding a "major trade deal with representatives of a big and highly respected country." A spokesperson for British Prime Minister Keir Starmer confirmed he would provide an update on US-UK trade discussions later Thursday. Sources familiar with the negotiations indicated the framework of an agreement would be announced. "The United States is an indispensable ally for both our economic and national security," a Downing Street spokesperson stated. "Talks on a deal between our countries have been continuing at pace, and the Prime Minister will update later today." A British official […]
UK Stocks Decline Led by Healthcare and Real Estate Despite Trade Talk Progress
Britain's main indexes fell on Wednesday, with healthcare and real estate stocks leading the decline despite positive developments in trade talks, as investor focus shifted to the upcoming U.S. Federal Reserve interest rate decision. By 1008 GMT, the FTSE 100 was down 0.3%. The domestically focused midcap index slipped 0.2%, poised to end its nine-session upward streak. An index of the UK's healthcare companies dropped 2% after the U.S. Food and Drug Administration appointed Vinay Prasad, an oncologist previously criticized for FDA leadership and COVID-19 mandates, as the director of its Center for Biologics Evaluation and Research. Shares of GSK and AstraZeneca fell between 4.4% and 2%, with GSK heading toward its largest daily decline in a month. The real estate index shed 1.3% following an industry survey that showed Britain's construction sector contracted for a fourth consecutive month in […]
Sterling Maintains Position Against Dollar and Euro as Manufacturing Activity Contracts
Britain's pound held steady against the dollar on Thursday, remaining close to a three-year high reached earlier in the week as investors moved away from the U.S. currency following President Donald Trump's tariff policies. A Thursday survey confirmed British manufacturing activity contracted for the seventh consecutive month in April, highlighting the impact of Trump's tariffs and Britain's employer tax increases on business activity. The pound traded at $1.3327, down less than 0.1% for the day. It reached its highest level since February 2022 on Monday, having gained 3.2% last month - its largest monthly increase against the dollar since November 2023. The U.S. currency has suffered significantly from Trump's trade policies, with inconsistent tariff decisions undermining confidence and reducing growth forecasts. "We expect the pound to remain firm against the U.S. dollar over the course of the year, though some […]
UK Housing Prices Drop in April Following Tax Changes
British house prices fell by 0.6% in April, marking their largest monthly decline since August 2023, according to data released by mortgage lender Nationwide. This drop follows the end of a property transaction discount and exceeded economists' expectations. The decline represents the first fall since August last year and was more severe than anticipated. Economists polled by Reuters had predicted flat growth after March's stagnation. Annual house price growth also slowed to 3.4% in April, down from 3.9% in March and below the forecasted 4.1% increase. Nationwide's chief economist, Robert Gardner, attributed the softening growth to recent changes in property taxes. "Early indications suggest there was a significant jump in transactions in March, with buyers bringing forward their purchases to avoid additional tax obligations," he noted. On April 1, the UK government reduced the threshold at which homebuyers become eligible […]
House Republicans Face Challenges with Trump Tax Cuts and Medicaid Funding
Republican lawmakers in Congress are confronting their biggest challenge of Donald Trump's presidency this week: reconciling internal divisions over proposed cuts to Medicaid and popular green energy initiatives to fund a landmark tax-cut bill they hope to enact by June. Following a two-week recess marked by some heated constituent encounters, House Republicans are set to begin debating and voting on segments of Trump's agenda legislation that would also fund his immigration crackdown while boosting fossil fuel production and military spending. "We'd like to have it on the president's desk by June," House Majority Leader Steve Scalise, the chamber's No. 2 Republican, told Reuters. "It's going to be a very transparent process, where committees will be holding their hearings and mark-ups in public view." Scalise emphasized that Republicans' top priority is extending provisions of Trump's 2017 Tax Cuts & Jobs Act […]
Be the first to leave a comment