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Gas firms supply 180bscf to power plants despite N2.7tn debt

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Despite the outstanding N2.7tn legacy debt, gas companies supplied 179.79 billion standard cubic feet of gas to power firms between January and July 2025, valued at approximately N607bn.

A report by the Nigerian Upstream Petroleum Regulatory Commission disclosed that gas-to-power supply reached its highest level in three months, with average daily deliveries rising by 3.48 per cent month-on-month, from 833.86 million standard cubic feet per day in June to 862.86 mmscf/d in July 2025.

Over the first seven months of the year, gas-to-power supply stood at 780.23 mmscf/d in January, increased to 849.37 mmscf/d in February, and rose further to 886.83 mmscf/d and 886.70 mmscf/d in March and April, respectively. The daily averages for May, June, and July were 837.64 mmscf/d, 833.86 mmscf/d, and 862.86 mmscf/d, respectively.

This translates to an average of 24.19 Bscf in January, 23.78 Bscf in February, 27.49 Bscf in March, and 26.60 Bscf in April. In May, June, and July, the volume of gas supplied to power generation companies was 25.96 Bscf, 25.02 Bscf, and 26.75 Bscf, respectively.

It was revealed that the thermal plants consumed the largest percentage of the domestic gas supply, even when many of the power generation companies still owed billions of naira to gas companies. Our correspondent learned that one of the largest power plants in the country owes an international oil company over N500bn in unpaid gas debt. But generation companies said they would only pay the gas debts when the Federal Government clears the N5tn debt owed to the Gencos.

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According to the United States Energy Information Administration, 1 cubic foot equals 1,036 British thermal units. This means that the 179.79 Bscf used for power generation between January and July is equal to 186.26 million MMBtu.

With the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s gas-to-power price of $2.13/MMBtu, this is equivalent to $396.74m. At an exchange rate of N1,530 to a dollar, the figure is approximately N607bn worth of gas supplied to power generation companies in seven months.

As of December 2024, it was reported that the Federal Government and some power generation companies owed over N2.7tn in legacy debts to gas producers in Nigeria. The gas companies, earlier in the first quarter of 2024, stopped gas supply to the power generation companies due to mounting debts, plunging the country into weeks of darkness. The Federal Government waded in with promises gas producers said were left unfulfilled.

As gas producers lamented the debts owed by power generation companies, the Federal Government said it was planning to clear the N2.7tn owed to gas companies with royalties.

The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, disclosed this recently during a Zoom meeting organised by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in commemoration of Ekpo’s second year in office.

With the new arrangement, gas companies that are owed by the government for gas supplied to power plants would be settled through the gas royalties they are required to pay to the government. Komolafe stated that the NUPRC played a critical role alongside other stakeholders to address the legacy debt.

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Since the majority of the companies that are owed pay royalties, Komolafe added that discussions were ongoing about how to extinguish the debt through royalty credits. “On the issue of legacy power debt, I would like to say that the commission is playing a critical role in conjunction with other stakeholders.

“One of the solutions that has been canvassed is the extinguishment of the legacy debt through royalty credits. You might note that most of the companies that are owed are gas producers; they pay royalties on gas. So, some of the discussions have been, ‘Can such debts be extinguished on the basis of royalty credits that they have?’” he asked.

The NUPRC boss added that the regulator, as the agency supervising production and royalty payments, is providing guidance to the government on how to implement the idea without disrupting government revenue flow.

“The commission is providing guidance to the authorities, both to the Decade of Gas and the minister, on how such a mechanism can be implemented in a manner that is not going to disrupt the industry or even the revenue flow to the government.

“So, being the entity that is charged with the assessment of royalty and the assessment of production, we provide the necessary data and the necessary guidance to address those issues relating to royalty payment and extinguishment of the gas-to-power debt through royalty payment,” Komolafe disclosed.

Speaking recently at a function in Lagos, the Chairman of Geometric Power and former Minister of Power, Barth Nnaji, regretted that despite having over 200 trillion cubic feet of proven gas reserves, Nigeria continues to struggle to supply enough gas to its power plants.

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Nnaji expressed deep concern over what he described as a national contradiction: being rich in natural gas but still failing to meet domestic electricity generation needs. “It’s quite perplexing. We are a gas-rich country, yet we struggle to supply enough gas to our power plants. It’s a contradiction that many find hard to understand,” he said.

Nnaji, a former Minister of Power, noted that while the official domestic gas price for power generation was formerly pegged at $2.42/MMBtu, the NMDPRA revised it down to $2.13/MMBtu effective April 1, 2025. However, he said generation companies often source gas from the open market at $2.70 and above, depending on supply constraints and contract terms.

“Because most electricity is generated using gas, and GenCos depend heavily on sourcing this gas from the open market, the disparity between the regulated and actual prices continues to strain the sector,” Nnaji said.

He warned that the pricing gap is worsening liquidity challenges in the power sector, contributing significantly to the over N1tn electricity subsidy recorded in the first half of 2025 and the growing trillion-naira debt owed to GenCos by the Federal Government. According to him, the gas-to-power benchmark being below market realities places an unsustainable burden on power producers.

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Kwara strengthens partnership to boost mechanised farming

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The Kwara State Government has strengthened its partnership with the All Farmers Association of Nigeria and other agricultural stakeholders to advance mechanised farming, environmental sustainability and women inclusion across the state.

The renewed commitment was reaffirmed during a courtesy visit by the leadership of the Kwara State chapter of AFAN to the Kwara State Agro-Climatic Resilience in Semi-Arid Landscapes in Ilorin.

This was contained in a statement issued on Tuesday by the Communication Officer of KWACReSAL, Okanlawon Taiwo, a copy of which was made available to The PUNCH in Ilorin.

Speaking during the meeting, the State Project Coordinator of KWACReSAL, Shamsideen Aregbe, assured farmers of the state government’s continued support toward improving food production, mechanised agriculture and climate resilience.

He said, “Tractorisation remains a critical component of modern agriculture. Access to farming equipment is essential for increasing productivity and addressing food security challenges across the state.”

He explained that the tractor support initiative introduced last year followed a World Bank-backed intervention and presidential directive aimed at supporting farmers with mechanised farming equipment.

Aregbe acknowledged concerns raised about operational challenges affecting some tractors, assuring stakeholders that efforts were ongoing to determine the condition and operational status of the equipment to enable effective utilisation by farmers.

“We must sustain engagement with farming communities, particularly in addressing challenges relating to flooding, agricultural logistics and food security,” he added.

The project coordinator also stressed the need for gender equality and inclusion in agricultural interventions across the state.

“The inclusion of women is not negotiable. We must continue to encourage and support women to actively participate in agricultural programmes and leadership processes,” he stated.

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Earlier, the Chairman of AFAN in Kwara State, Shuaib Ajibola, commended KWACReSAL for its interventions in the agricultural sector, reaffirming the association’s readiness to collaborate on programmes aimed at improving farmers’ welfare and environmental sustainability.

Ajibola disclosed that the association planned to commence an agricultural expo and stakeholder engagement programme across the state following its recent inauguration activities to reconnect with farmers and strengthen agricultural outreach.

“Previous editions of the interventions covered the 16 local government areas of the state and involved stakeholders from different agricultural sectors,” he said.

The AFAN chairman also raised concerns over land use disputes and other agrarian issues affecting farmlands, noting that the development had created anxiety among some farming communities regarding land ownership and rights.

“There is a need for sustained stakeholder dialogue and engagement to resolve disputes and ensure peaceful farming activities across communities,” Ajibola added.

Also speaking, the Project Coordinator of AFAM, AbdulRahman Babatunde, applauded KWACReSAL for its support to farmers, especially in the area of agricultural inputs and mechanised farming.

“ACReSAL provided 100 per cent agricultural inputs to participating farmers last year, and beneficiaries across communities can testify to the positive impact of the intervention,” Babatunde said.

He disclosed that farming activities for the current planting season had already commenced, with farmers actively registering, hiring tractors and preparing their farmlands.

In her remarks, the AFAM Women Leader, Sherifat Ibrahim, advocated increased empowerment and technical training for women in rural communities to enable them to actively participate in mechanised farming.

“There is a need for gender-friendly operational systems and practical training that will make tractor handling easier and more accessible for women and young learners involved in agricultural programmes,” she said.

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Meanwhile, the Environmental Safeguards Officer of KWACReSAL, Mr Abubakar Mohammed, reaffirmed the project’s commitment to gender equality, women’s inclusion and effective grievance management across all project activities.

The renewed collaboration comes amid growing efforts by the Kwara state government to improve food production and strengthen climate-smart agriculture through partnerships with farmer associations, development agencies and international organisations.

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See Full List of Top 10 World’s Largest Economies in 2026

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The United States is projected to remain the world’s largest economy in 2026 with a gross domestic product estimated at $32.1 trillion, according to new global economic forecasts obtained from Focus Economics on Wednesday.

The U.S. continues to lead global output through dominance in technology, finance, healthcare, and advanced manufacturing. Growth in artificial intelligence, healthcare innovation, and high-value industries has further widened its lead over other major economies in recent years.

The top 10 world economies ranked in numbers

1. United States — $32.1 trillion
The United States remains the world’s largest economy, accounting for over a quarter of global output in nominal terms. Its economy is highly diversified, with Silicon Valley driving global leadership in AI, biotech, and software, while Wall Street anchors the financial sector.

2. China — $20.2 trillion
China is the world’s second-largest economy, driven by manufacturing, exports, and large-scale industrial production. It remains the leading global producer of electronics, machinery, and textiles, though it faces structural challenges, including a shrinking population and high debt levels.

3. Germany — $5.4 trillion
Germany remains Europe’s largest economy, supported by a strong industrial base and the Mittelstand network of medium-sized manufacturing firms that form the backbone of its export strength.

4. India — $4.5 trillion
India continues its rapid economic rise, driven largely by services and information technology. Its economy has more than doubled over the past decade, supported by a young population and expanding domestic demand.

5. Japan — $4.4 trillion
Japan remains a global manufacturing powerhouse in robotics, automobiles, and electronics, although long-term growth is constrained by an aging population and structural economic stagnation.

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6. United Kingdom — $4.2 trillion
The United Kingdom is a major service-based economy, with strengths in finance, insurance, and real estate, anchored by the City of London.

7. France — $3.6 trillion
France has a diversified economy led by luxury goods, aerospace, agriculture, and manufacturing, with global brands such as Airbus and LVMH playing major roles.

8. Italy — $2.7 trillion
Italy combines a strong services sector with manufacturing strengths in fashion, machinery, and automobiles, driven largely by its industrial northern regions.

9. Russia — $2.5 trillion
Russia remains heavily dependent on oil and gas exports, with energy revenues playing a central role in its economy despite ongoing sanctions and geopolitical pressures.

10. Canada — $2.4 trillion
Canada rounds out the top 10, supported by natural resources such as oil, forestry, and mining, alongside a strong services and financial sector.

Economists say the global economy is increasingly being shaped by technology, demographics, energy transitions, and geopolitical tensions, all of which will influence how these rankings evolve in the coming years.

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Nigeria misses OPEC oil production quota again

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Again, Nigeria has missed its crude oil production quota set by the Organisation of the Petroleum Exporting Countries after averaging 1.49 million barrels per day in April, below the 1.5 mbpd benchmark.

Figures from the Nigerian Upstream Petroleum Regulatory Commission showed that the country produced an average of 1,488,540 barrels of crude daily in April, representing about 99 per cent of the OPEC quota. When condensates were added, total daily production rose to 1.66mbpd

Last month, the NUPRC said oil production now averaged 1.8mbpd. However, data released on Tuesday was at variance with the report. The latest data mean Nigeria remained below its OPEC allocation for the ninth straight month since July 2025.

The NUPRC document showed that combined crude oil and condensate production peaked at 1.85 mbpd during the month, while the lowest output stood at 1.46 mbpd. The PUNCH reports that the April figures are an appreciable improvement compared to March, when oil output was 1.55mbpd.

Nigeria’s oil production has struggled for years due to crude theft, pipeline vandalism, ageing infrastructure, and underinvestment in the upstream sector. Although output improved marginally in April compared to March, it was still insufficient to meet the country’s OPEC target, underscoring persistent challenges in ramping up production despite government efforts to boost volumes.

The PUNCH reports that Nigeria’s crude production in March was 1.38 mbpd. While there was a 69,000 bpd increase from the 1.31 mbpd recorded in February, the figure is still 117,000 bpd below the OPEC quota.

The figures for February indicated a month-on-month decline of 146,000 barrels per day, widening the country’s shortfall from its OPEC production allocation. This is the eighth consecutive month the country has failed to meet the OPEC quota since July 2025.

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Recall that although Nigeria recorded a marginal improvement in January, when production rose from 1.422 mbpd in December 2025 to 1.46 mbpd, the rebound was short-lived as output fell significantly in February 2026.

Earlier data from NUPRC had also shown that crude oil production weakened at the end of 2025. Production declined from 1.436 mbpd in November 2025 to 1.422 mbpd in December, before recovering slightly in January.

In 2025, Nigeria’s crude oil production fell below its OPEC quota in nine months of the year, meeting or slightly exceeding the target only in January, June, and July.

Nigeria opened 2025 strongly, producing 1.54 mbpd in January, about 38,700 barrels per day above its OPEC allocation. However, production slipped below the quota in February at 1.47 mbpd and weakened further in March to 1.40 mbpd, marking one of the widest shortfalls during the year.

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