Nigeria’s power generation companies (GenCos) have blamed the latest national grid collapse—the 12th in 2024—on the suspension of natural gas supply due to unpaid legacy debts exceeding ₦2.7 trillion.
The nationwide outage, which occurred around 1:36 PM on Wednesday, December 11, was confirmed by the Jos Electricity Distribution Company. Speaking to The PUNCH, Dr. Joy Ogaji, CEO of the Association of Power Generation Companies (APGC), said gas producers halted supply over accumulated debts from previous transactions.
Dr. Ogaji explained that gas suppliers have formally notified GenCos of their decision to suspend supply until the outstanding payments are settled. “The gas suppliers have already informed our GenCos that they will no longer supply gas until the debts are cleared. This issue didn’t arise overnight,” she stated.
She further disclosed that relevant authorities, including the Nigerian Electricity Regulatory Commission (NERC), the Minister of Power, and the Presidency, have been informed but are yet to intervene decisively.
“The debt was about ₦2 trillion earlier this year and has now ballooned to over ₦2.7 trillion. Gas accounts for 70% of the thermal GenCos’ invoices, and payments from the Nigerian Bulk Electricity Trading (NBET) are insufficient to cover this. When we receive only 9% of our payments, we pass that proportion to the gas suppliers. This poverty is shared across the value chain,” Dr. Ogaji added.
Contradictory Claims on Gas Supply Suspension
In a statement on Wednesday, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) refuted allegations that it directed gas suppliers to cut off indebted GenCos.
The NMDPRA clarified that no such directive was issued, emphasizing that recent stakeholder engagements were only aimed at sensitizing participants about provisions of the Petroleum Industry Act (PIA) regarding wholesale gas supply licenses.
“The Authority wishes to reassure stakeholders and the public that the supply and distribution of natural gas and petroleum products remain seamless and unaffected as we approach the festive season and the new year,” the statement read.
This denial came in response to claims made on social media linking the grid collapse to NMDPRA directives, purportedly issued due to the federal government and GenCos’ indebtedness to gas suppliers.
A Looming Energy Crisis
The ongoing crisis highlights the chronic financial challenges facing Nigeria’s power sector, where inefficiencies and mounting debts have hampered operations and infrastructure. As stakeholders and government agencies trade blame, Nigerians are left grappling with persistent blackouts and unreliable electricity supply.
