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Blackout fears grow over gas plant maintenance

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Seven power plants across Nigeria are expected to experience gas supply constraints as Seplat Energy shuts down a major facility for scheduled maintenance, raising fears of potential electricity shortfalls and looming blackouts, the Nigerian Independent System Operator has warned.

In a notice issued on Thursday, NISO alerted electricity market participants and consumers that the maintenance, slated for February 12 to 15, 2026, would temporarily reduce gas availability to some thermal power plants. The system operator emphasised that critical national infrastructure and essential services would be prioritised should load management measures be required during the period.

Power stations projected to be directly affected include Egbin, Azura, Sapele, and Transcorp Power Plants, while NDPHC Sapele, Olorunsogo, and Omotosho plants are likely to experience indirect constraints due to network-wide gas balancing effects.

The planned maintenance affects gas supply into the NNPC Gas Infrastructure Company Limited (NGIC) pipeline network and is expected to temporarily reduce thermal generation capacity on the national grid. At least seven power stations are projected to face direct and indirect constraints during the exercise.

In a separate press statement issued by NISO management and the Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, the system operator confirmed that gas availability to seven grid-connected power plants would be curtailed during the four-day exercise.

Earlier assessments by NISO indicate that the maintenance could result in a generation shortfall of about 934.96 megawatts, representing roughly 19.67 per cent of the combined available thermal and hydro generation capacity of 4,753.10MW on the grid.

The notice read in part: “The Nigerian Independent System Operator hereby informs the general public and all electricity market participants of anticipated gas supply constraints affecting some major thermal power generating stations connected to the national grid.

“This situation arises from a formal notification received on the scheduled maintenance shutdown of a major gas supply facility from 12 to 15 February 2026 (both days inclusive). Full gas supply is expected to be restored on 16 February 2026.

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“During the maintenance period, gas availability to certain power plants that depend on this supply network will be temporarily reduced. This will result in a temporary reduction in available thermal generation capacity across the national grid. This reduction underscores the need for careful system operation to maintain grid stability and reliability.”

NISO, which recently assumed the role of independent system operator under Nigeria’s restructured electricity market framework, said it would deploy real-time operational measures to preserve grid integrity throughout the maintenance window.

“In line with its statutory mandate, NISO will deploy appropriate real-time operational measures to safeguard the integrity and security of the national grid throughout the maintenance window,” the statement added.

“Any load shedding, if required, will be implemented in a structured, transparent, and equitable manner in close coordination with distribution companies. Priority will be accorded to critical national infrastructure, essential services, and security installations,” it emphasised.

The operator assured stakeholders that all decisions taken during the period would follow established grid security and reliability standards. “NISO assures all stakeholders and electricity consumers that every action taken during this period will be strictly guided by established operational procedures, grid security requirements, and reliability standards.

“The National Control Centre will intensify real-time system monitoring and contingency planning, while also ensuring fair load allocation based on available generation capacity,” the statement added.

Nigeria’s electricity grid remains heavily dependent on thermal power plants, which account for over 70 per cent of installed generation capacity and run primarily on natural gas supplied through pipelines and upstream processing facilities concentrated in the Niger Delta.

While Nigeria has abundant gas reserves—the largest in Africa—persistent supply bottlenecks, pipeline vandalism, payment arrears, and infrastructure maintenance have repeatedly disrupted electricity generation.

Industry data show that even when installed capacity exceeds 13,000MW, actual available generation often hovers between 4,000MW and 5,000MW due to gas shortages, transmission constraints, and plant outages.

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Egbin, for instance, remains the largest single thermal power station in Nigeria with an installed capacity of 1,320MW. Azura-Edo contributes 461MW, while Transcorp’s Ughelli plant has over 900MW installed capacity. Any reduction in gas supply to these facilities typically has an immediate ripple effect across the national grid.

In a related statement titled “Notice of Scheduled Maintenance on Major Gas Plant and Facilities,” the Nigerian National Petroleum Company Limited confirmed the routine maintenance on its gas production facilities from February 12 to 15.

Seplat, a joint venture partner of NNPC Ltd and a key supplier of gas into the NGIC pipeline network, described the exercise as part of standard safety and asset integrity protocols.

“The public is hereby informed that Seplat Energy Plc, a Joint Venture partner of NNPC Ltd and a key supplier of gas into the NNPC Gas Infrastructure Company Limited pipeline network, has scheduled routine maintenance on its gas production facilities from 12th to 15th February 2026.

“This planned activity forms part of standard industry safety and asset integrity protocols designed to ensure the continued reliability, efficiency, and safe operation of critical gas infrastructure. Periodic maintenance of this nature is essential to sustain optimal system performance, strengthen operational resilience, and minimise the risk of unplanned outages,” the statement said.

The company acknowledged that the maintenance would temporarily reduce gas supply into the NGIC network, with possible knock-on effects on electricity generation.

“During the four-day maintenance period, there will be a temporary reduction in gas supply into the NGIC pipeline network. As a result, some power generation companies reliant on this supply may experience reduced gas availability, which could modestly impact electricity generation levels within the timeframe,” it added.

NNPC Ltd and Seplat said they were working to ensure the exercise is completed as scheduled, while mitigation measures are being put in place. “NNPC Ltd and Seplat Energy are working closely to ensure that the maintenance is executed safely and completed as scheduled.

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In parallel, NNPC Gas Marketing Limited is engaging alternative gas suppliers to mitigate anticipated supply gaps and maintain stability across the network. Upon completion of the maintenance exercise, full gas supply into the NGIC system is expected to resume promptly, enabling affected power generation companies to return to normal operations.”

The Executive Director of PowerUp Nigeria, Mr Adetayo Adegbemle, faulted the handling of the planned maintenance, describing it as evidence of poor long-term planning in the power sector. Reacting to the announcement of anticipated gas constraints, Adegbemle said the development reflects a systemic failure to build buffers into critical infrastructure planning.

“This announcement shows our inability to plan ahead. Nothing says we should not have storage facilities that would hold us for days while this maintenance is being done,” he said. He argued that with better foresight, the impact of routine maintenance on electricity generation could be significantly reduced.

“I want to believe it is just our Nigerian way of approaching all issues that is accounting for this. We really need to change our thinking and approach to issues. We need to chase excellence in all we do,” Adegbemle added. He stressed that as Nigeria continues to depend heavily on gas-fired power plants, investments in gas storage and strategic reserves would help shield electricity consumers from avoidable supply shocks during scheduled maintenance or unexpected disruptions.

For millions of Nigerians, however, the technical language of “gas balancing effects” and “maintenance windows” may translate simply into darker homes, noisier generators, and higher fuel expenses over the four-day period.

As the country pushes reforms under the Electricity Act and seeks to attract investment into generation and gas infrastructure, the latest development reinforces a recurring lesson: Nigeria’s power stability remains inseparably tied to the reliability of its gas supply chain.

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NNPC eyes $60bn investment, targets 600tcf in new master plan

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The Nigerian National Petroleum Company Limited (NNPC) has unveiled plans to grow Nigeria’s gas reserves from 210 trillion cubic feet (tcf) to 600 tcf, while attracting approximately $60 billion in investments into the sector.

According to NNPC’s X handle on Friday, the disclosure came from NNPC’s Executive Vice President for Gas, Power & New Energy, Olalekan Ogunleye, during the CERAWeek energy conference by S&P Global in Houston. Speaking on a panel titled “The New Gas Order: Market Depth and the Reshaping of Global Trade”, Ogunleye emphasized Nigeria’s strategic position in the global gas market.

“With the ongoing Strait of Hormuz shipping constraints stemming from geopolitical tensions in the Middle East, Nigeria is uniquely positioned to become a major supplier of LNG and gas-based industries,” Ogunleye said. “Our abundant gas resources, combined with our proximity to key markets, give Nigeria a competitive advantage in the global energy landscape.”

Ogunleye outlined the key deliverables of the NNPC Gas Master Plan, noting, “We aim to move Nigeria’s validated gas reserves from 210.5 tcf to an estimated potential of 600 tcf.”

“Our goal is to increase gas production volumes from 7.4 billion standard cubic feet per day (bscfd) to 12 bscfd by 2030, exceeding the Federal Government’s mandate for 62% growth.”

“We are committed to attracting $60 billion in additional investments into the gas sector through commercial incentives and strategic partnerships,” Ogunleye averred.

He stressed that the Gas Master Plan is grounded in disciplined execution rather than ambition alone. “This plan is neither aspirational nor theoretical.

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“Its success depends on applying execution discipline to our annual work plans to ensure we meet—and surpass—our gas development growth targets,” the executive vice president for AGS, power & new energy said.

With these strategic moves, Nigeria is positioning itself to play a more significant role in global LNG supply and the gas-based industrial sector, leveraging both its natural resources and geographic advantage.

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Blackouts cost Nigeria N40tn yearly – Report

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Nigeria loses about N40tn annually to poor electricity supply, the Nigerian Independent System Operator, an agency of the Federal Government, has said, warning that unreliable power remains one of the biggest constraints to economic growth, industrial productivity, and job creation in the country.

The system operator noted that persistent outages continue to impose high costs on businesses and households, many of which are forced to generate their own electricity.

According to the organisation, reliable electricity remains one of Nigeria’s most important economic priorities, stressing that power outages cost Nigeria up to $29bn annually.

Converted at the prevailing exchange rate of N1,385 to a dollar, this translates to roughly N40.1tn in yearly losses to the economy. The operator added that the burden extends across all sectors, stating that businesses, manufacturers, and households spend billions each year generating their own electricity.

“Reliable electricity is one of Nigeria’s most important economic priorities. Power outages cost Nigeria an estimated $29bn annually. Businesses, manufacturers, and households spend billions each year generating their own electricity,” the system operator said in its latest industry report.

It emphasised that a stable power supply would unlock economic opportunities, noting that “a stable national grid unlocks economic growth, industrial productivity, and job creation”.

Despite the huge demand, the organisation said Nigeria generates significantly more electricity than is ultimately delivered to consumers due to structural bottlenecks across the value chain.

It disclosed that Nigeria generates approximately 45,000 to 50,000 megawatts of electricity daily, but the grid only takes 5,000 megawatts, which is about 10 per cent of total generation. “Nigeria generates approximately 45-50 GW of electricity daily, far more electricity than the grid can deliver. Yet only about 5GW currently reaches the national grid,” it said.

The operator attributed the shortfall to multiple challenges, saying, “The gap reflects constraints across the value chain, including transmission capacity limitations, distribution network constraints, and gas supply disruption.”

To address these issues, the system operator outlined its responsibilities, noting that NISO’s mandate is to strengthen grid reliability and accountability. It added that its duties include enforcing the national grid code, strengthening system dispatch and reliability, improving sector transparency and accountability, and supporting coordination across the electricity value chain.

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The organisation stressed the urgency of reforms, stating that a stable national grid is essential for Nigeria’s economic future. It also quoted its board chairman, Adesegun Akin-Olugbade, as saying, “Electricity is, after all, a 19th-century technology, and we do not need rocket scientists to fix these problems.”

Making recommendations, the operator said the way forward is to digitalise the grid, strengthen infrastructure, diversify the energy mix, and enforce grid code compliance.

On the feats recorded in the past year of NISO’s creation, the organisation pointed to ongoing improvements in transmission infrastructure, noting that 82 new power transformers were commissioned between 2024 and 2025. It added that 8,500+ MVA additional transformer capacity had been added, while over 30 transmission projects were completed.

According to the operator, the national grid wheeling capacity now stands at approximately 8,700MW. The organisation further disclosed that the grid had recorded operational milestones in recent years, including a 5,802MW all-time peak generation in March 2025, a 129,370MWh record daily energy delivery, and 421 consecutive days without grid collapse during 2022–2023.

“These milestones demonstrate the potential of the system when operating conditions align,” it said.

The agency also highlighted progress in grid digitalisation through the SCADA/EMS programme, stating that there had been a “$1.16bn investment in grid digitalisation,” with over 3,000 kilometres of fibre optic network deployed and more than 100 substations equipped with SCADA technology, adding that the project had reached approximately 69 per cent completion.

It emphasised that improved monitoring would strengthen operations, noting that real-time monitoring enables faster decision-making and improved grid stability. The operator reiterated that bridging the gap between generation and delivery remains critical, stressing that Nigeria generates far more electricity than consumers receive, while transmission, distribution, and gas supply challenges continue to limit the amount of power that reaches the grid.

As Nigerians continue to grapple with widespread power outages blamed on gas constraints since the beginning of the year, the Transmission Company of Nigeria blamed multiple factors for low allocation, including generation companies’ output and requests by the DisCos. TCN said electricity load allocation to distribution companies is determined mainly by their daily requests.

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So far, power generation has fallen far below 4,000MW, limiting the capacity of DisCos to supply electricity to their customers. Our correspondent reports that data from TCN’s distribution load profile as of 25 March 2026 showed that a paltry 2,908 megawatts was allocated to the 11 distribution companies.

While Nigerians experience persistent outages, several distribution companies keep apologising to customers and attributing the situation to reduced generation caused by gas constraints. The Minister of Power, Adebayo Adelabu, also apologised on Tuesday, acknowledging the disruptions and assuring Nigerians that efforts were ongoing to stabilise supply in a few weeks.

The minister attributed current blackouts to gas supply constraints affecting 75 per cent of Nigeria’s gas-fired plants. “Even the best turbines cannot operate without raw materials. Global gas shortages due to the Middle East crisis, local supply obligations, outstanding payments to gas suppliers, and pipeline repairs have all contributed to the recent decline in generation,” he said.

According to him, only two out of 32 power plants currently have firm gas supply contracts, while the rest rely on irregular supplies on a best-effort basis.

Experts speak

A Professor of Energy, Dayo Ayoade of the University of Lagos, blamed corruption and poor governance for the country’s electricity woes. According to him, the economy will continue to lose money and will not develop “provided we don’t take control of the power sector”.

Ayoade said the economy will continue to suffer because self-generation is too costly for the common man and small businesses.

“Until the power sector is put right, the economy will continue to suffer, Nigerians will continue to suffer, and there is no way out of this. Self-generation doesn’t work because it’s inefficient. The kind of resources you need to generate power, like gas, are out of the hands of private individuals or companies. So, it is very important that the government takes the lead on this,” he stated.

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The professor said the way forward is for the government to undertake holistic reforms of the sector, calling for the removal of electricity subsidies.

“That reform requires us to tell one another the truth. Nigerians will have to pay more money for power. Tariffs must reflect the cost of delivering electricity. Also, creating new institutions like GAMCO and others all the time means there is a proliferation of institutions in the sector. We need to streamline the sector; we need to control corruption,” he said.

Ayoade added that governance is key to the power sector. “One of the reasons the sector is not working is poor governance. Billions of dollars were spent on power in the past with no appreciable electricity. We can’t continue down that way. There are too many loopholes and leakages. We have to address this,” he submitted.

The convener of PowerUp, Adetayo Adegbemle, reiterated that the sector is bleeding because bulk power users have exited the grid, making cost recovery a burden. He said operators may not be able to boost power generation in the face of low recovery.

“We have allowed the big consumers to escape the national grid, pushing the load of sustaining it onto residential consumers. The tariff becomes more expensive for them, while producers continue to seek alternatives, albeit more costly. The Federal Government should, as a matter of urgency, reverse this trend to boost power supply,” he said.

Adegbemle also noted that the electricity subsidy is no longer sustainable, saying the government ought to have found a way out of the burden. He emphasised that the subsidy affects the entire value chain, as the Federal Government has failed to fulfil its subsidy obligations.

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CBN blacklists top loan defaulters

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The Central Bank of Nigeria (CBN) has officially restricted banking services for “chronic defaulters” and large-ticket obligors with non-performing loans.

In a sweeping move to enforce credit discipline and safeguard the nation’s financial system, the apex bank issued a policy statement on Wednesday following remarks by CBN Governor Olayemi Cardoso at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum in Abuja.

The Governor made it clear that the era of regulatory forbearance for delinquent borrowers is over.

He emphasised that the bank is shifting toward a more aggressive stance on corporate governance to ensure that the N4.61tn in new capital recently attracted by the banking sector is protected from systemic abuse.

“Our stance on corporate governance is unequivocal: zero tolerance for violations. By ending years of regulatory forbearance, we have reinforced accountability, tightened supervision, and elevated compliance standards across the sector,” the Governor stated.

The new directive specifically targets “large-ticket obligors”, individuals or entities with significant outstanding debts classified as non-performing in the Credit Risk Management System. Under the new rules, these defaulters will be barred from accessing not only fresh credit but also essential contingent liabilities and trade instruments.

“We have implemented a restriction of banking services to non-performing large-ticket obligors. This decisive step underscores our commitment to credit discipline, financial integrity, and accountability,” the statement read.

According to the CBN, the move is designed to instil a “culture of repayment” that has historically been lacking among high-profile borrowers. By cutting off access to instruments such as letters of credit and performance bonds, the regulator aims to prevent “credit jumping”, a practice where defaulters migrate between banks to accumulate more debt.

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“By curbing access to banking services for chronic defaulters, we are reinforcing the culture of repayment, protecting depositors, and safeguarding the stability of the financial system,” the apex bank added.

Beyond the crackdown on debtors, Cardoso reaffirmed that the CBN remains firmly committed to orthodox monetary policy. This approach prioritises price stability and the use of traditional tools to anchor inflation expectations, moving away from unconventional interventions to restore confidence in the naira.

“The CBN remains firmly anchored in orthodox monetary policy, focused on restoring price stability, strengthening policy credibility, and anchoring expectations through discipline and consistency,” the statement concluded.

For years, the Nigerian banking sector has struggled with “chronic defaulters”, wealthy individuals or massive corporations that borrow billions and fail to repay.

These are often referred to as “large-ticket obligors”. When these loans go bad, they threaten the liquidity of banks and the safety of ordinary citizens’ deposits.

Under the leadership of Cardoso, the CBN is pivoting toward “Orthodox Monetary Policy”. This means moving away from the era of massive development interventions and direct lending to sectors like agriculture and focusing instead on its core mandate: price stability and financial system regulation.

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