Wholesale gas-producing companies have abruptly stopped the supply of natural gas to power generation companies for electricity production over the non-payment of debts accrued from previous supplies, fresh findings by The PUNCH have shown.

The Chief Executive Officer of the Association of Power Generation Companies, Dr Joy Ogaji, disclosed the latest development in an exclusive interview with The PUNCH on Wednesday, stressing that the gas-producing companies have formally notified all GenCos of the suspension of natural gas supply.

The gas supply was abruptly halted after the Nigerian Midstream and Downstream Petroleum Regulatory Authority reportedly instructed gas producers to suspend the delivery of natural gas to indebted GenCos until further notice, citing the escalating debts.

The situation has led to a nationwide electricity blackout, severely impacting power generation across the country.

Currently, over 70 per cent of Nigeria’s power is produced by gas-fired power plants.

Earlier this year, Minister of Power, Adebayo Adelabu, disclosed that the Federal Government would start offsetting part of the debts it owes power generating companies and gas suppliers from April this year.

The minister, while on a working visit to Egbin Power Plc in the Ikorodu area of Lagos State, said he would liaise with the Central Bank of Nigeria to prioritise foreign exchange allocation to the power sector, saying this would boost the ability to ramp up capacity in terms of generating output.

“The Federal Government is now prioritising paying down on the outstanding debts, and I have assured the board and management that effective from April, we will start paying down on debts, as a form of incentive to continue to have them in operation,” he stated.

While the government has in the past few months paid N205bn of the debt owed to the GenCos, an ongoing disagreement between the NMDPRA and gas produce