Connect with us

Business

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

Published

on

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.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Constituency meeting: Lagos lawmaker empowers residents

Published

on

The lawmaker representing Eti Osa Constituency I in the Lagos State House of Assembly, who doubles as the Majority Leader of the House, Noheem Adams, has empowered 250 residents of the area with N100,000 each, totalling N25m.

Adams, whose stakeholders’ meeting is the 7th in the series, stated at the event, which was held on Thursday at Orchid Hotel, Eleganza, with the Theme: “Governance In Action: The Gains Of the Renewed Hope Agenda,” that the residents of the area believed in him to have sent him to the assembly.

“I thank you all for believing in me and for sending me to the Lagos State House of Assembly. Today, I am called ‘Honourable’ because of your belief in me. I thank you for this and I promise not to ever disappoint you

“Today, I will give out N25m cash as empowerment to 250 persons, as each of them will get N100,000. We will also give out 100 Point of Sale machines to 100 of the beneficiaries of the money today to start a business in that line.

“We are not transferring money to anybody; it will be given out in cash today,” he said.

Also speaking, Senator Wasiu Sanni-Eshinlokun, representing Lagos Central at the Senate and former deputy speaker of the Lagos State House of Assembly, revealed that the National Assembly would vote N1bn for the rehabilitation of the Lekki-Epe Expressway and that he would provide books for some students resuming schools in September.

In Lagos, local political leaders have taken empowerment to the grassroots earlier this year.

In February, a member of the Lagos State House of Assembly, representing Ifako-Ijaiye Constituency 01, Adewale Temitope, empowered 500 widows with cash gifts and food items within his constituency.

The initiative, tagged “A Widows’ Valentine Special,” took place at his constituency office in Ifako-Ijaiye.

On Thursday, the Deputy Speaker of the House, Mojisola Meranda, also gave scholarships to some students in tertiary institutions and provided food palliatives to indigent households in the Apapa Constituency 1.

It was reported that the 10th constituency stakeholders meeting was held simultaneously on Thursday in all the 40 constituencies represented at the House, with empowerment being a front-burner.

In his speech delivered across the 40 constituencies in the state, the Speaker of the Lagos State House of Assembly, Mudashiru Obasa, said this year’s theme, “Governance In Action: The Gains of the Renewed Hope Agenda,” was carefully chosen to highlight the tangible benefits of governance.

He said that this was in alignment with the Renewed Hope Initiative of President Bola Tinubu.

“Under the dynamic leadership of President Bola Tinubu, our nation has witnessed an inspiring transformation; a renewal of the national spirit and a reinvention of the Nigerian state.

“Today, I stand before you to celebrate these tangible achievements, to affirm our commitment to good governance and to reaffirm that our Renewed Hope is not merely a slogan, but a call to action and a vision in progress,” he said.

Also speaking at the event, the Chairman of Eti Osa East Local Council Development Area, Samson Agunbiade, said a town meeting was a golden opportunity not only to speak, but to seek cooperation of all, saying that no government could solve the people’s problems alone.

In his speech, the Deputy Chairman of Iru LCDA, Murisiq Ajasa, who represented the Chairman, said the council had done much in a month, including community engagement, and had reactivated ward level discussions.

“We have opened discussions on healthcare services for the residents. We have constructed the road on Ajose Adeogun. We have done an environmental cleanup to tackle flooding.

“Residents have asked for a reduction of noise in the area and we have taken action on this. We will keep partnering with the people and corporate organisations. We have created rapid responses for complaints about security,” he said.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading

Business

Wike distributes subsidised fertilisers to Abuja farmers

Published

on

The Minister of the Federal Capital Territory, Nyesom Wike, has flagged off the distribution of fertilisers at 50 per cent subsidised rates to farmers across the six area councils of the territory.

In August, the FCT Administration distributed approximately 900 metric tonnes of assorted fertilisers, donated by the Central Bank of Nigeria, through the Federal Ministry of Agriculture and Food Security, to farmers in the nation’s capital.

Minister of State for the FCT, Dr Mariya Mahmoud, acknowledged the challenges faced by the populace regarding the high cost of food items, expressing the administration’s commitment to implementing measures to address the situation.

Speaking during the flag off of the distribution of 550 metric tonnes of assorted fertilisers, including conventional NPK, granular urea, NPK gel, and urea gel fertilisers in Abuja on Thursday, the minister, represented by his Chief of Staff, Chidi Amadi, said the aim was to boost food production, stabilise prices, and strengthen food security in the territory.

“This initiative underscores our firm commitment to food security, agricultural revitalisation, and the welfare of our people. As the FAO has emphasised, food insecurity threatens dignity, stability, and peace.

“In view of this, and in alignment with Mr President’s Renewed Hope Agenda, the FCTA has institutionalised this annual support scheme to ease production costs and enhance yields.

“The timing of this exercise is deliberate – coinciding with the farming season – to ensure that farmers can access inputs when they are most needed,” he said.

The minister warned that measures had been put in place to ensure that the resources reached genuine farmers and to prevent diversion or misuse.

He acknowledged that the fertilisers were not enough, stating that together with its partners, the International Institute of Tropical Agriculture, the Japan International Cooperation Agency, the Leventis Foundation, and the World Bank, the administration was prioritising capacity building and the promotion of good agronomic practices.

“Together, these interventions are reclaiming degraded lands, supporting livelihoods, and revitalising key agricultural sectors.

“Let me reaffirm that this administration remains committed to building a prosperous, inclusive and secure city,” Wike stated.

Meanwhile, the Mandate Secretary, Agriculture and Rural Development Secretariat, Ango Abdullahi, thanked the minister for his consistent support, noting that the farmers will also receive 3,500 knapsack sprayers in addition to the fertilisers, and that there was an urgent need to strengthen the sector, as the population in Abuja continued to grow.

Abdullahi said the fertilisers will be distributed to the farmers at a 50% subsidised rate “in strict adherence” to the Minister’s directives, adding that the Secretariat was aligned with the President’s Renewed Hope Agenda, to reposition the agricultural sector of the FCT.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading

Business

Firm partners Hilda Baci for world’s largest jollof rice cook-off

Published

on

GBfoods Nigeria, through its brand, Gino, has announced a partnership with celebrity chef, Hilda Baci, to attempt a Guinness World Record for the largest pot of Jollof rice ever cooked.

It was reported that the historic cook-off, scheduled for September 12, will feature Baci preparing Jollof rice in a specially designed six-metre-wide pot.

Jollof rice — a beloved West African dish — has long been at the centre of friendly rivalries between Nigeria, Ghana, and other countries over who makes the best version.

The event is expected to attract chefs, food enthusiasts, cultural icons, and Jollof lovers from across the country.

Explaining the firm’s decision to partner Baci on the initiative, the Marketing Director, Oreoluwa Atinmo, in a statement on Thursday, noted that the company’s support for the initiative celebrates “The resilient Nigerian spirit that never settles.”

She described the free-to-attend event as “a convergence of culture and history” that will create lasting memories and reinforce Nigeria’s place at the heart of Africa’s culinary pride.

“The love and support we’ve received has been truly overwhelming, especially as Nigerians look forward to watching Hilda Baci go after an audacious dream.

“A tremendous amount of time, effort, and planning has gone into this moment, which stands as yet another opportunity for our nation to come together in the name of passion, perseverance, and of course, great food”, Atinmo added.

The statement also noted that Baci described the attempt as a way to fulfil her dreams while celebrating Nigeria’s rich culinary heritage.

“Jollof rice is more than just food; it is a symbol of who we are, our resilience, and the stories we tell through our culture. This event is not only about breaking a record; it is about celebrating our identity, our heritage, and the flavours that unite us as Nigerians and Africans.

“Together with Gino, I am honoured to take on this historic feat, and I invite everyone to come, share in the moment, and witness history being made in the name of passion, culture, and great food”, the statement quoted Baci to have said.

Hilda Baci, who gained global recognition in 2023 after breaking the Guinness World Record for the longest cooking marathon by an individual, has become a symbol of Nigerian culinary excellence.

Her latest attempt continues the growing trend of Nigerians seeking to break world records in diverse fields, showcasing creativity, resilience, and national pride.

The planned record-breaking event is expected to boost Nigeria’s cultural profile while reinforcing the country’s claim to culinary supremacy in the Jollof debate.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

 

Continue Reading

Trending