The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has directed gas producers to discontinue supply of gas to indebted generation companies (GenCos).
It said the directive became necessary in view of debt amounting to over N2 trillion owed the gas producers.
The country faces an imminent electricity blackout if this happens as the GenCos rely on gas for power generation.
The NMDPRA in a post on X, pointed out that the substantial debts owed to producers had hindered their ability to sustain operations.
“An electricity blackout is imminent following the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s directive to gas producers to cease supplying gas to indebted generation companies (GenCos).
“NMDPRA stated that the substantial debts owed to producers had hindered their ability to sustain operations. It called on gas off-takers, particularly power generation companies, to ensure timely payment for the gas supplied.
“The federal government and some GenCos currently owe over N2 trillion in legacy debts to gas producers in Nigeria,” the tweet read.
