NMDPRA denies claims of directing wholesale gasoline suppliers to halt gasoline provide to GENCOs 

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has refuted claims that it issued a directive instructing wholesale gasoline suppliers to halt gasoline provide to power-generating corporations (GENCOs) over fee defaults.

The controversy started with a tweet from the Nigeria Nationwide Grid on Wednesday, claiming an imminent electrical energy blackout on account of NMDPRA’s alleged directive to halt gasoline provide to indebted GENCOs.

The tweet linked the motion to over N2 trillion in legacy money owed owed by the federal authorities and GENCOs to gasoline producers, which it stated hindered operations.

In a press release on Wednesday, NMDPRA categorically denied the false claims that it had directed gasoline suppliers to halt deliveries to energy corporations. The Authority clarified that these claims had no foundation in any official communication, significantly throughout a latest stakeholders’ engagement in Lagos, which targeted on the wholesale provide license beneath the Petroleum Trade Act (PIA) 2021.

“The publication circulating is totally unfounded,” the assertion learn partially.

It added, “There was no such directive issued at our latest stakeholders’ engagement, nor was it mentioned in any of our communications. We need to guarantee stakeholders that every one efforts are being made to make sure the continual and uninterrupted provide of pure gasoline to energy producing corporations.” 

The Authority additional reassured all stakeholders and the general public that the distribution and provide of pure gasoline, together with different petroleum merchandise, would stay seamless, particularly because the nation enters the festive season and prepares for the 12 months 2025.

What you must now 

Nigeria’s energy sector continues to face vital challenges, largely on account of underinvestment and liquidity points.

• In June 2024, Energy Technology Corporations (GenCos) known as on the Federal Authorities to settle excellent electrical energy money owed, warning that the non-payment of over N2 trillion might threaten the sustainability of electrical energy technology for Nigerians.

• In response, the Minister of Power, Adebayo Adelabu, introduced in August that the federal government had settled N205 billion of the N1.3 trillion owed to GenCos, aiming to enhance liquidity within the sector. He emphasised that this fee was a part of the debt owed throughout numerous segments of the facility business.

• Earlier, in Could, the federal government allotted N130 billion to deal with a part of the N1.3 trillion gasoline provide money owed within the Nigerian Electrical energy Provide Trade (NESI).

These ongoing debt settlements are a key a part of the federal government’s technique to reinforce liquidity and guarantee a extra dependable energy provide.