FG Intervenes In Looming Blackout Over N2.7Trn Gas Suppliers’ Debt

The Federal Government has indicated interest to intervene in tackling gas supply to generation companies after suppliers of the product reportedly halted gas supply to Gencos due to a debt of about N2.7tn.

Senior officials at the Federal Ministry of Power stated that the Federal Government would not allow gas suppliers to throw the nation into widespread blackout by cutting off supply.

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Insiders believe that the government will intervene by settling some of the gas debts as it has always done, but not by necessarily meeting the gas producers.

The Chief Executive Officer of the Association of Power Generation Companies, Dr Joy Ogaji, stated on Wednesday that gas suppliers had halted supply to Gencos.

“They (gas suppliers) have halted the supply. They have already informed our GenCos that they are not going to be supplying gas anymore until what is outstanding is settled and it didn’t happen today.

“We have told the Nigerian Electricity Regulatory Commission, they are already aware of the situation. There is nobody who would say they are not aware; the minister is aware, and the presidency is aware.

“The total debt has now increased to over N2.7tn and you know that 70 per cent of thermal Gencos invoice is gas,” she said.