NNPC power plant debts threaten gas supply and power stability as the FG moves to resolve payment and tariff gaps undermining key national assets

NNPC power plant debts are threatening electricity stability in key regions as the Federal Government considers urgent interventions to fix tariff gaps and delayed payments that have crippled operations at major thermal plants.

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The troubled facilities include the Maiduguri Emergency Power Plant, Okpai Independent Power Plant Phase 2, and Kano IPP Phase 1.

The development came to light after a high-level meeting at the NNPC Towers in Abuja between the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo; the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; and senior officials from the Nigerian National Petroleum Company Limited, led by Dr Salihu Jamari, representing the Executive Vice President, Gas, Power and New Energy.

In a statement issued Wednesday by the gas minister’s media aide, Louis Ibah, stakeholders discussed financial and policy interventions to stem the operational and fiscal pressures facing NNPC’s power generation subsidiaries.

The NNPC team reportedly raised alarms over persistent tariff shortfalls within the Nigeria Bulk Electricity Trading framework and mounting unpaid invoices, warning that without swift resolution, power supply to northern regions and national grid stability could be at risk.

“NNPC Ltd warned that without timely intervention, power supply to key regions may be jeopardised, with potential economic and social impacts,” the statement read.

We must act to ensure our gas-to-power infrastructure fulfils its promise to the Nigerian people.

Ekpo underscored the urgency of resolving the tariff bottlenecks, citing the importance of these gas-fired plants to regional development and the national energy transition.

“We must act to ensure our gas-to-power infrastructure fulfils its promise to the Nigerian people,” he said.

Finance Minister Edun backed the call for collaborative solutions, stressing the need for a durable financial framework to protect these assets and drive long-term economic growth.

He noted that aligning financial flows with power output would stabilise the sector and attract future investments.

“All parties agreed to hold a follow-up meeting with the Minister of Power to work towards actionable solutions within a short timeline,” the statement added.

The power sector’s liquidity woes are largely attributed to underpriced tariffs, inefficient collection, and under-metering.

Though the government has maintained a subsidy for all but Band A customers, the N200bn monthly shortfall is proving unsustainable.

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According to Power Minister Adebayo Adelabu, the inability of Distribution Companies (Discos) to recover adequate revenue continues to ripple through the value chain—leaving power generation and gas supply companies with billions of naira in unpaid dues.