Despite efforts by the Federal Government to boost the national grid supply, power supply across Nigeria remained stagnant over the weekend, with gas supply challenges and financial uncertainties contributing to the situation.
According to data from the Independent System Operator, only 16 power plants were contributing to the grid, generating 3,530.33 Mega Watts as of 3pm yesterday, with Egbin Power, Nigeria’s largest power plant, completely offline.
Major contributors to the grid included Azura-Edo IPP (420MW), Kainji Hydro (415MW), and Shiroro Hydro (275.73MW).
Gas suppliers have been reluctant to increase supply to power plants due to a debt of over $1.3 billion for past supplies, despite government entreaties.
Although the government agreed to pay electricity subsidies of N1.6 trillion in 2024 to the Nigerian Electricity Supply Industry, only N450 billion was budgeted for it, exacerbating the liquidity challenge facing the industry.
Minister of Power, Chief Adebayo Adelabu, confirmed that no payment was made for January, compounding the liquidity challenge and hindering sectoral investments.
To address the liquidity issues, the government is considering settling existing sectoral outstanding debts to gas supply and power generation companies using cash payments and guaranteed debt instruments.
In response to the drop in supply, electricity distribution companies assured consumers of improved services soon, attributing the instability to insufficient power allocation and gas shortage to generating companies.
Additionally, the European Union announced a 37 million Euro investment in the power sector, alongside 200 million Euros granted since 2008, to fund various projects including small hydro power, solar for health care facilities, rural electrification, and circular economy initiatives.
Minister Adelabu emphasized the need for a cost-reflective tariff to ensure sustainability and efficient operation of the market, thanking the EU for their support and promising collaboration on their programs aligned with the Ministry’s strategy.
