Rita Odafe
Nigeria may face power outages soon due to the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s recent order to gas suppliers to stop deliveries to debt-ridden power generation companies (GenCos).
The Authority highlighted that significant outstanding debts from these companies have hindered operations and urged gas off-takers, especially those in power generation, to pay for the gas provided without delay.
Currently, the federal government and several GenCos owe more than N2 trillion in long-standing debts to gas producers across Nigeria.
This announcement was made during a workshop focused on supply chain operations by the Authority’s CEO, Farouk Ahmed, who spoke through legal adviser Joseph Tolorunse. Ahmed confirmed that gas producers have been ordered to stop supplying gas to companies that have failed to pay for past deliveries.
In response, Ahmed countered the claims by stating that once complaints were received, the Authority acted by instructing the affected companies to cease gas supply until the debts were cleared.
