Bashiru Adoke warns of N630bn power sector debt crisis

Nigeria's electricity supply is threatened by a N630bn debt in the power sector, inadequate investment in gas production, and weaknesses in transmission infrastructure. Industry stakeholders raised these concerns at the sixth annual conference of the Power Correspondents Association of Nigeria in Abuja.

They emphasized that without a reliable payment mechanism for gas suppliers, operators struggle to sustain deliveries to thermal power plants. The Nigerian Independent System Operator reported a decline in national grid generation due to insufficient gas supply and reduced water inflows into hydroelectric reservoirs, leading to shorter electricity supply hours and increased load shedding.

Bashiru Adoke, General Manager of Gas Commercial at the Nigerian National Petroleum Development Company, stated that the gas-to-power crisis could be resolved with sustained investment and a dependable payment structure. He noted that the current proceeds from electricity sales are insufficient to cover gas bills, leaving suppliers with mounting receivables.

Adoke warned that periodic government interventions would not resolve the issue if new debts continue to accumulate.