Posted by Amarachi on Wed 11th Dec, 2024 - tori.ng
The Authority stated that the substantial debts owed to producers had hindered their ability to sustain operations.
Nigerians are likely to experience blackout in the coming days following the directive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority to gas producers to cease supplying gas to indebted generation companies (GenCos).
The Authority 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.
Speaking at a stakeholder sensitisation workshop on wholesale supply operations in Nigeria, the Chief Executive Officer of the Authority, Farouk Ahmed, announced the decision. Represented by Joseph Tolorunse, the agency’s legal adviser, Ahmed explained that gas producers had been instructed to halt further supply to gas receiver companies due to non-payment for delivered gas.
The issue was highlighted by Emmanuel Cofie-Spiff of Oando, who reported that only 28 per cent of the total gas supplied to off-takers had been received. He said this had placed considerable financial strain on the company, while the Authority had not adequately supported producers’ demands for payment.
Ahmed, however, dismissed this claim, stating that upon receiving complaints, the Authority directed the affected companies to stop supplying gas until payment was received.