Nigerians May Spend Christmas in Blackout As NMDPRA Orders Halt of Gas Supply To GenCos Over Unpaid N2 Trillion Plus Debt
By: Olufemi Orunsola
Amid current nationwide black out following the collapse of national power grid for the 12th time in year 2024, indications have emerged that Nigerians may spend Christmas in nationwide blackout going by the order of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to gas off-takers in the country to halt gas supplies to GenCos who are said to be owing debts, totaling over N2 trillion.
OPEN TELEVISION NAIJA (OTN) News gathered that the humongous debt profile has significantly hindered the ability and capacity of gas producers to sustain operations.
The directive was announced during a stakeholder sensitization workshop on wholesale supply operations in Nigeria where the NMDPRA Chief Executive Officer, Farouk Ahmed, who was represented by Joseph Tolorunse, disclosed that the directive was issued following complaints from producers about non-payment for delivered gas.
According to him, "Gas producers have been instructed to halt further supplies to indebted generation companies until payments are made".
OTN News reports that the regulatory agency urged gas off-takers, particularly GenCos, to promptly settle payments for gas supplied to avert further disruptions.
Aldo speaking at the workshop, a representative of Oando, Emmanuel Cofie-Spiff revealed that only 28 per cent of gas supplied to off-takers had been received, placing severe financial strain on gas producers.
He lamented the lack of adequate support from the NMDPRA in addressing producers’ payment demands.
Responding to these claims, Ahmed clarified that the agency had directed affected gas companies to stop supply to defaulting off-takers.
Given these developments, Nigerians may have to brace up for spending the Christmas time for the year 2024 in nationwide blackout if the needful is not done by relevant authorities.
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