Facts have emerged that Nigeria faces an imminent blackout as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has directed gas producers to stop the supply of gas to indebted generation companies (GenCos).
The Nigeria National Grid on its X official account on Wednesday said NMDPRA’s directive to halt gas supply to GenCos is due to the over N2 trillion debts that the Federal Government and some GenCos owe gas producers in Nigeria.
According to the tweet, NMDPRA specifically that the humongous debts being owed producers has affected their ability to sustain operations.
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“An electricity blackout is imminent following the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s directive to gas producers to cease supplying gas to indebted generation companies (GenCos).
“NMDPRA stated that the substantial debts owed to producers had hindered their ability to sustain operations. It called on gas off-takers, particularly power generation companies, to ensure timely payment for the gas supplied.
“The Federal Government and some GenCos currently owe over N2 trillion in legacy debts to gas producers in Nigeria,” the tweet read.
Nigerian Tribune reports that the ongoing debt settlement effort is part of the Federal Government’s attempt to increase liquidity in the sector as well as guarantee increase in power supply.
