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Nigeria restores national grid after collapse amid N2.7tn gas supply debt crisis

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Nigeria’s national grid restored to 3,624.34MW after a collapse, as FG intervenes to tackle a N2.7tn gas supply debt threatening power supply.

 

Nigeria’s national grid was restored to a peak power generation of 3,624.34 megawatts on Thursday after a collapse the previous day plunged the nation into darkness.

The Federal Government intervened to address a gas supply crisis caused by a N2.7tn debt owed to suppliers, which had led to threats of halting gas deliveries to power generation companies (Gencos).

 

Also read: Nigeria’s minister calls for more oil and gas investment to support renewable energy growth

 

Data from the Transmission Company of Nigeria (TCN) indicated that the grid, which collapsed on Wednesday at 1:36 pm—its 12th collapse this year—was operational by 1 am Thursday, with generation reaching 2,412.89MW.

By 7 pm, it peaked at 3,624.34MW, alleviating fears of prolonged blackouts.

Approximately 70% of Nigeria’s electricity is generated by gas-fired plants, making the country heavily reliant on a stable gas supply.

Gas suppliers had halted deliveries due to non-payment of debts, sparking concerns of a nationwide blackout.

Officials from the Federal Ministry of Power assured that the government would not allow gas supply disruptions to jeopardise power generation.

“The government cannot allow the gas supply to be cut off,” an official stated, hinting at efforts to partially settle outstanding debts to gas producers.

Insiders disclosed that while the Federal Government may not meet gas producers’ full demands, it is likely to offset part of the debts, continuing its strategy of ad hoc payments to stabilise the sector.

Dr Joy Ogaji, CEO of the Association of Power Generation Companies, confirmed the halt in gas supply.

She revealed that power plants were surviving on meagre payments from the Nigerian Bulk Electricity Trading (NBET).

“The total debt has increased to over N2.7tn, and we are all sharing in the poverty that NBET is giving us,” Ogaji said.

Earlier this year, the Minister of Power, Adebayo Adelabu, had pledged to start clearing debts owed to power generating companies and gas suppliers from April 2024. He also committed to securing foreign exchange allocation to support the power sector.

Despite these assurances, debt accumulation continues to hinder the stability of Nigeria’s energy supply chain, threatening both electricity production and economic growth.

As power generation stabilises, experts warn that without a sustainable approach to debt management and consistent gas supply, Nigeria’s energy sector risks further grid collapses.

A comprehensive strategy to restructure the electricity market, ensure timely payments, and incentivise investments is essential to prevent recurring crises.


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