An electricity crisis looms as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has directed gas producers to halt supplies to indebted generation companies (GenCos).
This is amidst the frequent national grid collapses this year, plunging the country into nationwide blackouts.
The NMDPRA’s decision stems from the debts owed by GenCos, which is said to have crippled the ability of gas producers to sustain operations.
With legacy debts from the federal government and power generation companies surpassing N2 trillion, the regulatory authority has called on gas off-takers to ensure timely payments for the gas supplied.
This suspension could exacerbate the country’s electricity challenges, with already fragile energy infrastructure and the recurring grid failures causing significant disruptions for millions of Nigerians.
The NMDPRA emphasised that immediate action is needed to resolve the payment issues and stabilise the gas supply to avert further blackouts.
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