Wednesday, December 1, 2021

Nationwide black out looms as gas suppliers threaten GenCos over unsettled debt

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Mudassir Ibrahim
Jaafar Jaafar is a graduate of Mass Communication from Bayero University, Kano. He was a reporter at Daily Trust, an assistant editor at Premium Times and now the editor-in-chief of Daily Nigerian.
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The Nigerian power sector is facing a serious ‘shut-down’ challenge following a threat of cutting of gas supplies to Gencos by gas producers in the country.

According to the president of the Nigerian Gas Association, NGA, Dada Thomas, the gas producers are demanding for the payment of the astronomical debt of gas supplied to the GenCos,

The association is threatening nationwide black-out and the threat has the potential to plunge the entire power sector of the nation into a total blackout.

“85 per cent of the country’s electricity is generated from gas fired plants. Unless the Central Bank of Nigeria, CBN, remits the N701 Billion intervention fund meant for the sector, nationwide black out looms,” Mr Thomas warned.

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When contacted, the spokesperson for the Gencos, Joy Ogaji, said the threat from the gas producers is beginning to create apprehension in the sector especially as the GenCos are currently handicapped to offset the debts owed gas producers.

DAILY NIGERIAN can report that gas producers are owed in excess of $500 million (N153.125 billion at N306.25 per dollar) and are having issues keeping up the running cost and operations of their companies, repaying loans and investing in new projects.

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