Osamagbe Imadiyi
According to recent findings, wholesale gas producers have abruptly ceased providing natural gas to power generation companies for the production of electricity due to the non-payment of debts incurred from prior supplies. In an exclusive interview on Wednesday, Dr. Joy Ogaji, the CEO of the Association of Power Generation Companies, revealed the most recent development and emphasized that the gas-producing companies have officially informed all GenCos of the suspension of natural gas supply.
Citing the growing debts, the Nigerian Midstream and Downstream Petroleum Regulatory Authority reportedly ordered gas producers to halt natural gas deliveries to indebted GenCos until further notice, causing the gas supply to be abruptly cut off. Adebayo Adelabu, the Minister of Power, announced earlier this year that the Federal Government would begin to pay off a portion of its debts to gas suppliers and power generating companies in April.
Although N205 billion of the debt owed to the GenCos has been paid by the government in recent months, the suppliers demanded payment of the outstanding balance due to a continuing dispute between the NMDPRA and gas producers over who should be receiving the 0.5% wholesale price levy imposed on petroleum products by the Petroleum Industry Act.
Dr. Ogaji, the CEO of APGC, said in the interview that the presidency and all other pertinent authorities have been informed of the current state of affairs and are awaiting the required actions. She also mentioned that the debt has grown to N2.7 trillion from its previous level of about N2 trillion this year. The disruption caused by the supply halt has raised concerns about energy shortages and operational instability across the country. On Wednesday, Nigerians were already in the dark after the country’s power grid collapsed once more.
This is the 12th time this year that the grid has collapsed. The grid went down Wednesday afternoon at approximately 1:36 p.m., according to reports. At 2:00 pm, it was noted that 0.00 megawatts of power were being generated.
