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Gas-to-power debt worsens outages as pipeline vandalism hits Nigeria

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Gas-to-power debt

Gas-to-power debt and pipeline vandalism reduce electricity generation, causing widespread outages across Nigeria amid festive season demand

Nigerians may face power outages this festive season as gas companies reduce supplies to thermal power plants due to unresolved gas-to-power debt, a development already affecting electricity generation nationwide.

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The Enugu Electricity Distribution Company (EEDC) confirmed the drop in power supply across the South-East, attributing it to low system frequency caused by gas constraints affecting generation companies.

In a statement, EEDC said the Transmission Company of Nigeria had resorted to load shedding to balance supply.

The development has disrupted energy allocation to EEDC and reduced daily service levels to customers served by its subsidiaries, including MainPower, TransPower, FirstPower, NewEra, and EastLand.

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Efforts are underway by stakeholders to restore normal distribution.

The Port Harcourt Electricity Distribution Company also issued a notice warning customers that the ongoing load shedding is due to insufficient generation and allocation from generation companies.

Joy Ogaji, CEO of the Association of Power Generation Companies, confirmed that gas suppliers had begun cutting off feedstock because of unpaid debts, despite the Federal Government’s approval of N185 billion in early December to settle outstanding obligations.

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Compounding the situation, the Nigerian Independent System Operator (NISO) reported that a gas pipeline vandalism incident in the upstream network disrupted supply to several gas-fired power plants.

The resulting drop in generation capacity has forced multiple thermal plants to operate below optimal output, affecting nationwide electricity supply.

In response, NISO activated contingency measures, including increased hydroelectric dispatch, generation re-dispatch, and voltage control interventions to maintain grid stability.

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The operator warned that the timing is particularly concerning given the additional festive-season electricity demand.

The situation highlights the persistent vulnerability of Nigeria’s power sector, where more than 80 per cent of grid-connected plants rely on natural gas.

Also read: MFM hosts Rivers seminar on new tax law reforms

Stakeholders have called for urgent resolution of gas-to-power debt issues and enhanced protection of infrastructure to prevent prolonged outages.

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