Latest News

Gas supply in Nigeria is at 43%, reducing Nigeria's grid capability.

Grid manager revealed on Friday that Nigeria's gas-fired plants receive less than half of the fuel needed, resulting in a worsening of electricity supply across Africa's largest country.

Operators claim that the shortage is due to a rising debt in the sector, resulting from government subsidies. This debt has reached 6 trillion naira (US$4.4 billion) for this month. Gas deliveries to power stations have fallen to less than half the required volume.

The national generation is now down to 4,300 megawatts. This has forced the grid operator to reduce electricity supply, also known as load-shedding. They have also cut the allocations for power distributors in order to maintain the stability of the system.

The Nigerian Independent System Operator, or NISO, said that thermal stations require around 1,630 millions standard cubic feet of?gas each day. However, actual supply on February 23 was just 692 mmscf, which is only 43% of the?required volume.

The NISO stated that the shortfall had reduced the 'national output' and 'amount of electricity allocated to distribution companies.

The company said that when the total system generation drops sharply, they must implement load-shedding and distribute available energy according to the regulated allocation percentages in order to maintain grid stability.

The government approved last year a plan to refinance the 4 trillion naira electricity sector debt in order to stabilize the industry. The debt, owed to 27 power companies for unpaid invoices between 2015 and 2023, has discouraged investment and worsened the already severe outages.

The government issued a first tranche of a bond worth 501 billion Nairas in January to?restore liquidity. Operators claim that the measure is insufficient, as total debt has risen to 6 trillion Naira.

Tarife?reforms have also been affected by the deteriorating supply. Even those 15% of consumers with higher incomes who were recently charged higher tariffs for their increased consumption and ability to pay, are now experiencing erratic power supply. Many have even considered abandoning the grid.

(source: Reuters)