Why electricity supply worsened — Minister

The Nigerian government has attributed the main cause of poor power supply in the country to the low supply of gas to generating companies (GenCos).

Nigeria’s Minister of Power, Adebayo Adelabu, disclosed this in a statement posted on his X handle on Friday.

“Yesterday, I had crucial discussions with power Generating companies (GenCos) and Distribution companies (DisCos) to address the ongoing issue of blackouts in parts of our country.

“Power supply during the yuletide improved, but unfortunately, we’ve experienced setbacks in the new year. After investigations, it’s clear that the main cause of poor power supply is the low supply of gas to GenCos,” Mr Adelabu said.

The minister said he visited facilities in Olorunshogo, Ogun State, and Omotosho, Ondo State, to understand the challenges firsthand while noting that resolving the gas supply issue is a top priority.

“During our meeting, we also addressed the indebtedness to GenCos by Nigeria Bulk Electricity Trading Company (NBET). While acknowledging the sector’s liquidity challenge, we are working on validating the debt and determining a fair resolution.

“I emphasized the importance of GenCos establishing contractual arrangements with gas suppliers to ensure a steady gas supply. Recognizing concessions may be needed, I assure you that we are committed to working on this to stabilize the power sector,” he added.

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To tackle the gas supply and liquidity challenges, Mr Adelabu said he has decided to form a committee involving all stakeholders.

“Together, we will work on recommendations to resolve these issues and ensure a more reliable and consistent power supply for our citizens,” he said.

He explained that a plan has also been established to initiate discussions with the minister of state for petroleum resources regarding collaboration and to emphasise to the ministry the importance of prioritising gas to power.

“Our commitment is unwavering in addressing the challenges affecting power supply. We understand the impact on citizens, and our goal is to swiftly resolve the issues of gas supply, indebtedness, and overall sector stability.

“Your patience is appreciated as we work collaboratively towards a brighter, more reliable energy future for Nigeria,” he said.

The Transmission Company of Nigeria (TCN) had in January said that there has been a gradual decrease in available generation into the grid due to gas constraints.

The company said this has impacted the quantum of bulk power available on the transmission grid for onward transmission to the distribution load centres nationwide.