Debt crisis blamed for power grid collapse as NMDPRA denies role

The national grid collapse that plunged Nigeria into darkness on Wednesday has sparked confusion, with key stakeholders pointing fingers over its cause.

While power generation companies (GenCos) attribute the blackout to a suspension of gas supplies due to over ₦2.7 trillion in legacy debts, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has denied any involvement in such a directive.

According to the Jos Electricity Distribution Company, the grid collapsed around 1:36 pm on Wednesday, marking the 12th such incident in 2024 alone.

Millions of Nigerians were left without power, with some parts of Abuja regaining bulk electricity supply only late Wednesday night.

The recurring outages have exacerbated concerns about the reliability of Nigeria’s power infrastructure, which is heavily dependent on gas-fired power plants for electricity generation.

In a statement, the NMDPRA absolved itself of responsibility, denying reports that it directed gas suppliers to halt supplies to GenCos over outstanding debts. The agency emphasized that its recent engagements with stakeholders were solely aimed at fostering compliance with the Petroleum Industry Act (PIA) 2021 and facilitating smooth operations in the gas sector.

“The authority wishes to reassure stakeholders and the general public that at no time was such a directive issued. Efforts are ongoing to ensure seamless and uninterrupted gas supply during the festive season and beyond,” the NMDPRA stated.

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Contrary to NMDPRA’s denial, Dr. Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies (APGC), confirmed that gas suppliers have indeed suspended deliveries to power plants.

She attributed the decision to mounting unpaid invoices, which have now exceeded ₦2.7 trillion.

“Gas suppliers have halted supply. Seventy percent of Nigeria’s power is generated by gas-fired plants, and the debt crisis has made it unsustainable for suppliers to continue operations without payments,” Ogaji explained.

Dr. Ogaji highlighted the precarious state of Nigeria’s electricity market, where thermal power generation heavily relies on consistent gas supply. Without urgent intervention, the sector risks further disruptions.

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Energy analysts warn that the ongoing debt crisis underscores systemic flaws in Nigeria’s energy sector. Dr. Mike Adebayo, an energy consultant, explained that unresolved financial obligations and weak regulatory frameworks have created a vicious cycle of inefficiency.

“Gas suppliers are private entities that rely on revenue to maintain operations. Without prompt payments, supply halts are inevitable. The government must address these structural issues to ensure energy security,” Adebayo noted.

The Transmission Company of Nigeria (TCN), which manages the national grid, has yet to comment on the collapse, raising further questions about its operational readiness and crisis management protocols.

Experts and stakeholders are urging the Nigerian government to take swift action to resolve the debt impasse, implement the PIA effectively, and revamp the electricity market. Without decisive measures, the risk of frequent outages and their economic consequences could persist into 2025.

For now, Nigerians face the reality of an unreliable power supply, underscoring the urgent need for sustainable solutions in the energy sector.