Debt Crisis Strikes: Nigerians Face Unprecedented Blackouts As Gas Supply Stops

Nigeria faces a growing energy crisis as gas-producing companies have halted the supply of natural gas to electricity generators due to mounting unpaid debts. This action has triggered nationwide blackouts and severe disruptions to power generation,…READ MORE…

raising alarms across the country.

Dr. Joy Ogaji, CEO of the Association of Power Generation Companies (APGC), confirmed that the gas suppliers have officially notified all generating companies (GenCos) of the suspension, which follows an order from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The decision was made in response to escalating debts that have now reached N2.7 trillion.

Gas-fired power plants, which generate over 70% of Nigeria’s electricity, have been severely impacted by the halt in supply. The blackout, which began on Wednesday afternoon, has left large parts of the country without power, with the national grid completely offline for several hours.

Debt and Delays: The Power Sector’s Struggles

Despite government promises to address the sector’s financial troubles, including the partial settlement of debts, ongoing disputes between the NMDPRA and gas producers have intensified the crisis. The situation is compounded by the power sector’s long-standing financial instability, as GenCos struggle with delayed payments and unpaid invoices.

This latest crisis comes as Nigerians already face frequent grid collapses. The recent collapse, marking the 12th of the year, exacerbates the uncertainty surrounding Nigeria’s power supply.

Calls for Reform and Forensic Audit

Experts, including Kunle Olubiyo, President of the Nigeria Consumer Protection Network, have called for an independent audit of the sector to determine the accuracy of the debt claims and address inefficiencies. The government is urged to privatize the power sector fully to ensure accountability and reduce corruption.

NMDPRA Responds to Allegations

In response to the claims, the NMDPRA has denied any directive to halt gas supplies, labeling the report as false. They reassured stakeholders that efforts are underway to maintain a steady flow of natural gas and petroleum products, despite the challenges.

For More Information And News Update, Join Ireporteronline WhatsApp Channel With Link Below: https://whatsapp.com/channel/0029VaV4jB6DuMRgwqnJCF32 For advertisement inquiries only, kindly send a message to 09010649814 on Whatsapp