The nation faces an imminent electrical energy blackout because the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has directed gasoline producers to halt provide of gasoline to indebted era firms (GenCos).
In an X (previously Twitter) submit on its official account on Wednesday, the Nigeria Nationwide Grid revealed that NMDPRA’s directive to halt gasoline provide to GenCos is as a result of over N2 trillion money owed that the Federal Authorities and a few GenCos owe gasoline producers in Nigeria.
The tweet identified that NMDPRA said that the substantial money owed owed to producers had hindered their means to maintain operations.
“An electrical energy blackout is imminent following the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s directive to gasoline producers to stop supplying gasoline to indebted era firms (GenCos).
“NMDPRA said that the substantial money owed owed to producers had hindered their means to maintain operations. It known as on gasoline off-takers, significantly energy era firms, to make sure well timed fee for the gasoline provided.
“The federal authorities and a few GenCos presently owe over N2 trillion in legacy money owed to gasoline producers in Nigeria,” the tweet learn.
Whereas the Federal Authorities has up to now few months paid a few of its debt owed to the GenCos, extra is required to allow the sustenance of the ecosystem.
What it’s best to know
Nigeria’s energy sector continues to grapple with challenges regardless of a number of authorities interventions, significantly as a result of underinvestment and lack of liquidity within the system.
- Adelabu had famous that the fee was a part of the debt owned by the federal government to the completely different segments of the ability firms.
- In Could, the federal authorities introduced the sum of N130 billion to settle a part of the N1.3 trillion gasoline provide money owed within the Nigerian Electrical energy Provide Business (NESI).
This ongoing debt settlement effort is a part of the federal government’s try to extend liquidity within the sector, and by extension, assure a rise in energy provide.
Nevertheless, gasoline off-takers, significantly energy era firms, are urged to make sure well timed fee for the gasoline provided.
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