The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Saidu Mohammed, has blamed the persistent electricity supply challenge in Nigeria on weak commercial arrangements in the gas-to-power segment, rather than lack of gas resources or generation capacity.
Mohammed noted that while Nigeria currently produces about eight billion standard cubic feet of gas daily and exports significant volumes through the Nigeria LNG, the domestic gas market for power generation remains underdeveloped.
He lamented that despite having over 13,000 megawatts of installed generation capacity, actual power supply has stagnated around 5,000 megawatts for more than two decades.
According to him, the recurring “no gas” challenge cited by power plants is largely linked to the absence of bankable and enforceable gas sales agreements.
He disclosed that only one or two power plants currently have commercially viable gas contracts, stressing that gas molecules will not flow without firm buyers and credible payment structures.
Mohammed said the Petroleum Industry Act (PIA) has introduced reforms aimed at addressing these gaps by prioritising domestic gas supply for power, enabling cost-reflective pricing and strengthening regulatory oversight.
He added that NMDPRA is committed to enforcing domestic gas supply obligations, improving pricing transparency and accelerating gas infrastructure development to ensure reliable and sustainable gas supply to power plants across the country.
