Nationwide blackout looms as gas suppliers have threatened to stop supply to thermal power plants over an estimated N3.3 trillion debt owed by power generation companies.
Chief Executive Officer of the Association of Power Generation Companies, Dr Joy Ogaji, disclosed this during an interview on Fresh FM.
Ogaji said the mounting debt across the power value chain is pushing the sector toward a major crisis.
She explained that the crisis stems from the failure of the Nigerian Bulk Electricity Trading Plc to fully pay for electricity generated by GenCos since the sector’s privatisation, noting that the government currently owes generation companies about N6.8 trillion, with roughly 70 per cent of the amount relating to thermal plants.She explained that about 70 per cent of whatever the government owes gas-fired power plants belongs to gas suppliers, meaning gas companies are owed about N3.3tn out of the N4.76tn tied to thermal generation.
Ogaji disclosed that gas suppliers have informed generation companies that they will no longer supply gas to power plants unless payments are made.
Ogaji added that a significant portion of the outstanding debt is owed to gas suppliers because thermal plants account for the majority of electricity generation on the national grid.
She further noted that the worsening debt crisis is directly responsible for the current electricity shortages.
