Business

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

Published

2 months ago

September 1, 2025

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.

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.

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.

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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Business

Nigerian petrol marketers to dump Dangote Refinery for cheaper fuel

Published

2 hours ago

October 24, 2025

Oluwagbenga Olaoye

Nigerian petroleum product marketers have announced plans to abandon Dangote Refinery’s petrol in favour of cheaper imported fuel.

The spokesperson of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Chinedu Ukadike, disclosed this on Friday.

This follows the drop in the landing cost of imported fuel to N839.97 per litre, which is N37 cheaper than Dangote Refinery’s gantry petrol price of N877 per litre.

Commenting on the development, Ukadike hinted that petroleum marketers would opt for imported fuel to enable Nigerians to access cheaper petrol.

He noted that the price disparity was a result of the liberalisation and deregulation of the country’s downstream sector.

“It is due to the liberalisation of the sector, which has set the tune for a price war. Marketers now have the option to buy either at N877 per litre with Dangote Refinery or N839 with MEMAN.

“The concern here is why would a local refinery (Dangote) sell petrol higher than imported ones?
“As petroleum product marketers, Nigerians are interested in buying petrol that is cheaper. When we have cheaper fuel, it sells faster,” he said.

The correspondents gathered that ex-depot prices of Emedab, Gulf Treasure, Ardova and Bono stood at N875 per litre, while that of Dangote Refinery remained at N877.

As of Friday evening, petrol was being sold at between N950 and N965 per litre at Nigerian National Petroleum Company Limited, NNPCL, MRS, Ranoil, Total and Emedab retail outlets in Abuja.

It was reports that the ongoing price war among operators in the sector may lead to a reduction in the current retail price in the coming days.

It will be recalled that recent data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, showed that Nigerians consumed 613.6 million litres of petrol between 2024 and October 10, 2025.

Earlier, marketers had complained about the non-supply of petrol by Dangote Refinery despite having paid billions to the 650,000-barrel-per-day facility.

An earlier report also indicated that Dangote Refinery has been experiencing a supply setback, resulting in a nationwide petrol shortage.

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Business

Large-scale agriculture driving Edo’s economic growth, says Okpebholo

Published

4 hours ago

October 24, 2025

Newsbreak365_Admin

Edo State Governor, Senator Monday Okpebholo, has reiterated his administration’s commitment to practical and result-driven governance and the diversification of the State’s economy through large-scale agriculture.

According to the governor’s Chief Press Secretary, Fred Itua, Okpebholo made the remarks on Friday when he led top government officials on an inspection tour of the State-owned Farm, located in Udomi, Edo Central Senatorial District.

Speaking during the visit, Okpebholo described the farm as a tangible example of his administration’s resolve to translate policies into visible results that benefit the people.

The governor said, “It is a practical farm by my administration that delivers on practical governance. That is what you are seeing here. We do not just talk; we do it for you to see.”

Okpebholo commended the Ministry of Agriculture and Food Security for the progress made and reaffirmed his administration’s focus on achieving food security, job creation, and economic diversification through large-scale agriculture.

He stressed that projects like the Udomi Farm represent a clear departure from promises on paper to results that can be seen and measured, underscoring his government’s commitment to empower local farmers and support agro-industrial development across Edo State.

Earlier, the Director of Agricultural Services in the Ministry of Agriculture and Food Security, Ogunbo David, who conducted the Governor and his team round the farm, disclosed that the maize cultivated at the site had reached the harvesting stage.

According to him, the farm is currently recording between six and seven tons of maize per hectare across 400 hectares, with the Prime Flour Mill at Ewu serving as the major off-taker.

Earlier in the day, Okpebholo had inspected ongoing construction work at the Benin Flyover, Ramat Park, Benin City, to ascertain the level of progress before proceeding to the Udomi Farm.

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Business

Tinubu credits multi-agency collaboration for Nigeria’s grey list exit

Published

4 hours ago

October 24, 2025

Newsbreak365_Admin

This came as the FATF announced the delisting at its Plenary in Paris, France, on Friday.

He described the move as a major milestone in the country’s ongoing economic and institutional reforms.

“This is not just a technical accomplishment. It is a strategic victory for our economy and a renewed vote of confidence in Nigeria’s financial governance,” a statement by Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, quoted the president as saying.

The FATF is the world’s foremost standard-setting body for combating money laundering, terrorist financing, and proliferation financing.

The announcement formally removed Nigeria from the list of jurisdictions under increased monitoring, commonly referred to as the “grey list”.

Tinubu said the delisting is evidence of the country’s commitment to global financial transparency and institutional integrity.

Nigeria was placed on the FATF grey list in February 2023, following concerns over weak enforcement, poor inter-agency coordination, and opaque financial practices.

“Rather than treat this as a setback, Nigeria viewed it as a call to action,” Onanuga stated.

Under the President’s directive and in alignment with his broader economic transformation agenda, Nigeria completed the FATF Action Plan through sweeping legal, institutional, and operational reforms.

The process was coordinated by the Nigerian Financial Intelligence Unit in conjunction with the Office of the Attorney-General, the Ministries of Finance, Justice, Interior, and other key institutions.

The President specifically praised the Director/CEO of the NFIU, Ms. Hafsat Bakari, and her team for what he called “diligent and timely implementation” of Nigeria’s commitments, saying their work earned international recognition for progress in tackling serious financial crimes.

President Tinubu credited the delisting to wide-ranging collaboration across the federal executive, legislature, judiciary, and private sector.

Among those acknowledged were the Central Bank of Nigeria, Corporate Affairs Commission, EFCC, ICPC, DSS, Nigeria Customs Service, Securities and Exchange Commission, and the National Drug Law Enforcement Agency.

“President Tinubu applauded the vital support from the Secretary to the Government of the Federation, the Minister of Aviation, the Minister for Budget and Economic Planning, the Minister for Defence, the Minister for Foreign Affairs, the Minister for Solid Minerals, the Minister of State for Finance, the National Security Adviser as well as the leadership of the National Assembly and the Judiciary, in the attainment of the laudable achievement,” the statement read.

“Without their dedication and sacrifice, today’s success could not have been achieved.

“I thank them for their efforts and urged other stakeholders to emulate their standards”, President Tinubu said.

He also commended Nigeria’s development partners, particularly the governments of France, Germany, the United Kingdom, the United States, the United Nations, and the European Commission for their technical support throughout the reform process.

According to President Tinubu, Nigeria’s removal from the FATF grey list is “not just a technical accomplishment, it is a strategic victory for our economy and a renewed vote of confidence in Nigeria’s financial governance.

“The exit from the FATF grey list marks the beginning of a new chapter in the nation’s financial reform agenda as Nigeria will sustain the already institutionalised reforms, deepen institutional collaboration and continue to build a financial system that Nigerians and the world can trust,” he stated.