Nigeria’s power generation reached 3,624.34 megawatts on Thursday after engineers from the Transmission Company of Nigeria (TCN) restored the national grid, which had collapsed the day before. The grid failure, the 12th of 2024, had led to a nationwide blackout.
It was discovered that gas providers have stopped providing electricity generation firms (Gencos) with gas due to outstanding payments totalling over N2.7 trillion. Given that 70% of Nigeria’s electricity is produced by gas-fired plants, this measure threatens to make the blackout worse. Following the system breakdown on Wednesday, power generation fell to zero megawatts by 2:00 pm. However, it recovered to 2,412.89 MW early on Thursday and reached a peak of 3,624.34 MW by 7:00 pm.
Senior officials at the Federal Ministry of Power confirmed that the government intervened to resolve the gas supply issues, ensuring grid restoration and sustained power generation. A ministry official, speaking anonymously, stated, “The government cannot allow gas supply to be cut off.” Another source noted that the intervention likely included partial settlement of outstanding debts to gas producers.
The Chief Executive Officer of the Association of Power Generation Companies, Dr. Joy Ogaji, confirmed the halt in gas supply. “Gas suppliers have informed Gencos that they will not resume supply until outstanding debts are settled,” she said. She highlighted that Gencos had been allocating a portion of payments received from the Nigerian Bulk Electricity Trading Plc (NBET) to gas suppliers but described the amounts as insufficient.
Adebayo Adelabu, the minister of power, promised earlier this year that starting in April 2024, he would start paying off debts owing to gas providers and Gencos. Adelabu said during a tour to Egbin Power Plc that the Federal Government was working with the Central Bank of Nigeria to address foreign exchange issues in the power industry and was giving priority to debt settlement. “As an incentive to ensure continued operation, the Federal Government is now prioritising outstanding debt payments,” he stated.
