Controversy Over Alleged Plans by NMDPRA to Stop Gas Supply to Electricity-Generating Firms

• The Nigeria National Grid has disclosed that there is a looming nationwide power outage over directives by NMDPRA to halt gas supplies to GenCos
• The company disclosed that the directive came as GenCos and the Nigerian government reportedly owe about N2 trillion to gas suppliers
• However, the NMPDRA refuted the report, saying that it did not issue such a directive to halt gas supplies to GenCos

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

There has been controversy over reported directives by the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) to halt gas supply to electricity-generating firms due to indebtedness.

According to a social media post by the Nigeria National Grid, the NMDPRA asked gas suppliers to halt further supplies to the GenCos as they owe about N2 trillion to gas companies.

National Grid alleges plans to halt gas supplies

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The post disclosed that NMDPRA specifically said that the massive debt has affected their ability to operate.

The Nigerian National Grid said that following the NMDPRA directive, there is a looming nationwide blackout.

The regulator was said to have reported that the debts owed to producers have hampered their ability to sustain operations and asked gas firms and GenCos to ensure prompt payments.

Legit.ng earlier reported that the Nigerian government and some GenCos owe over N2 trillion to gas companies.

NMDPRA denies reports

However, in a twist of events, the NMDPRA denied issuing a directive to halt gas supplies to the GenCos.

The regulator disclosed in a statement on Wednesday, December 12, 2024, that it did not issue such instruction to gas firms due to payment failures.

NMDPRA described the report as false and unfounded, saying it did not affect the information at a recent stakeholders’ meeting in Lagos between the NMDPRA, OPTS, IPPG, and others in the oil and gas sector.

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The NMDPRA said the meeting was held to sensitise stakeholders to the wholesale license, which complies with sections 142 and 197 of the Petroleum Industry Act (PIA).

Electricity company proposes 163% tariff increase

Legit.ng previously reported that Aba Power has proposed a 163% tariff hike to the Nigerian Electricity Regulatory Commission (NERC).

The company said the current tariff is no longer sustainable for its operations.

Ugo Opiegbe said the firm proposed a tariff hike for Band A users from N223.12/kWh in 2024 to N263.08/kWh in 2025.

Source: Legit.ng