Nationwide Blackout Looms As NMDPRA Orders Gas Producers To Cut Off Indebted GenCos

A nationwide electricity blackout is imminent following the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s (NMDPRA) directive for gas producers to halt supplies to indebted power generation companies (GenCos).

The Authority cited substantial debts owed by GenCos, amounting to over N2 trillion, as a major challenge hindering gas producers from sustaining operations. It urged gas off-takers, particularly GenCos, to ensure prompt payment for gas supplied.

Speaking at a stakeholder sensitization workshop on wholesale supply operations in Nigeria, the Authority’s CEO, Farouk Ahmed, represented by Legal Adviser Joseph Tolorunse, confirmed the directive. He explained that gas producers could no longer afford to supply gas without payment.

The issue was further emphasized by Emmanuel Cofie-Spiff of Oando, who revealed that only 28% of gas supplied to off-takers had been paid for, putting immense financial pressure on producers. However, Ahmed refuted claims of insufficient support, stating that the Authority had instructed affected companies to suspend supply until outstanding payments were made.

The development has raised concerns over potential disruptions to Nigeria’s already fragile power supply.