Low power generation lingers amid $ 1.3b gas debt

NIGERIA is facing a persistent electricity generation crisis as the grid remained below 3,500 megawatts despite an installed capacity of 13,000 megawatts.

While there were about 20 power plants on the grid, the level of generation fluctuates between 3,000MW and 3,500MW as industries and homes face supply challenges in the face of rising tariffs.

This comes as the federal government set up a committee to find a solution to the dwindling electricity generation crisis. The committee is confronted with the inability to pay gas producers $ 1.3 billion.

The debt and drop in generation are coinciding with the return of subsidies on electricity tariffs, even as an N1.7 trillion shortfall is expected in 2024.

Nigeria’s electricity generation has dropped to an average 2,000 megawatts from the previous average of 4,000MW.

The committee, which focuses on an intra- ministerial approach, would bring together the Minister of State Petroleum Resources ( Gas) Ekperikpe Ekpo, and the Minister of Power, Chief Adebayo Adelabu, to suggest ways and means of achieving sustainable gas supply to power plants.

As of the third quarter of last year, about 20 out of 27 electricity plants on the Nigerian grid were significantly underperforming, with some operating at a mere 0.2 per cent of their installed capacity.

Challenges such as aging infrastructure, recurrent maintenance issues, liquidity problems, and gas constraints were named by the Nigerian Electricity

Regulatory Commission as the major contributing factors to the operational struggles of the plants. Despite Nigeria’s initial goal of achieving a 40,000megawatt electricity generation by this year, only approximately 4,000 megawatts are being generated out of the 12,643 megawatts installed.

Only seven plants, including Azura, Paras, Dodin Kowa hydro, Jebba, Shiroro, Okpai, and Rivers IPP, managed to reach 50 per cent of their installed capacity, while others performed between 44 per cent and 0.2 per cent resulting in an overall plant availability factor of 33.31 per cent for grid- connected plants.

Ekpo outlined the challenges causing low supply of gas to thermal power plants to include the gas legacy debts, vandalisation of oil and gas pipeline infrastructure in the Niger Delta Region, domestic pricing of gas in dollars, among others.

He expressed his willingness to work harmoniously with any individual, organisation and agency to solve these challenges.

“We need to work collaboratively to solve the problem of gas supply to thermal plants and uninterrupted power supply to consumers in the country. There is absolutely nothing that can be done in Nigeria without stable power,” Ekpo said.

Adelabu stressed the need for the two Ministries to work collaboratively to resolve the problem of low gas supply to the Thermal Power Plants to achieve uninterrupted power supply in the country.

He assured that resolutions from the committee would be submitted to President Bola Tinubu and acted upon to bring an end to the crisis in the power sector.