Wholesale gas-producing companies have stopped the supply of natural gas to power generation companies for electricity production over the non-payment of debts accrued from previous supplies.
The Chief Executive Officer of the Association of Power Generation Companies, Dr Joy Ogaji, told newsmen on Wednesday that the companies have formally notified all GenCos of the suspension of natural gas supply.
Dr. Ogaji stated that all relevant authorities, including the presidency, have been notified of the current situation and are awaiting the necessary interventions.
According to her, the debt, which hovered around N2tn earlier this year, has increased to N2.7tn.
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She said, “It is no longer a matter of NMDPRA giving a directive. They have already stopped the supply of gas to power-generating companies.
“They (gas suppliers) have halted the supply. They have already informed our gencos that they are not going to be supplying gas anymore until what is outstanding is settled and it didn’t happen today.
“We have told the Nigerian Electricity Regulatory Commission, they are already aware of the situation. There is nobody who would say they are not aware; the minister is aware, and the presidency is aware.
“The total debt has now increased to over N2.7tn and you know that 70 per cent of thermal Gencos invoice is gas.
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“They have been paying a small amount. So, when they pay us nine per cent, we just calculate nine per cent of our gas invoice and send it to the gas supplier because that is the only way to survive. We are all sharing in the poverty that NBET is giving us.”
The halt in supply has disrupted the energy sector, leading to growing concerns about energy shortages and operational instability nationwide.
Already on Wednesday, Nigerians were plunged into darkness following another collapse of the national power grid.
This is the 12th time the grid would collapse in the year.