Business Briefings
Gas Suppliers Sustain Power Plants Despite Unpaid ₦2.7tn Liabilities
Nigeria’s gas producers supplied 179.79 billion standard cubic feet of gas to power plants between January and July 2025, despite a lingering ₦2.7 trillion debt owed by electricity generation companies.
Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that daily gas deliveries to thermal plants averaged 862.86 million standard cubic feet in July, up from 833.86 mmscf/d in June. Cumulatively, supply in the first seven months of the year was valued at about ₦607 billion, using the regulated gas-to-power price of $2.13/MMBtu.
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Industry players, however, say most GenCos continue to default on payments, citing the Federal Government’s outstanding ₦5 trillion debt to power companies as a bottleneck. Some large plants reportedly owe international oil companies over ₦500 billion for unpaid gas supply.
To address the challenge, NUPRC chief executive, Gbenga Komolafe, disclosed that the government is considering using royalty credits to offset part of the legacy debt, allowing producers to recover their dues without disrupting revenue flows.
Former Minister of Power and Geometric Power Chairman, Barth Nnaji, described the situation as a paradox, noting that Nigeria has over 200 trillion cubic feet of proven gas reserves yet struggles to fuel its power plants.
He warned that the gap between regulated gas prices and open market rates is worsening liquidity in the sector, aggravating subsidy burdens and increasing debts owed to GenCos.
