Gas producers in Nigeria have ceased supplying natural gas to power generation companies, GenCos, due to unpaid debts, plunging the nation into widespread blackouts.

The abrupt suspension follows a directive reportedly issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, prohibiting further gas deliveries until outstanding debts are cleared.

Dr Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, APGC, confirmed that the decision by gas suppliers is in response to escalating debt levels, which have now reached a staggering N2.7tn.

“This isn’t sudden; gas producers have informed us that supply will not resume until all dues are settled,” Ogaji revealed, adding that both the Nigerian Electricity Regulatory Commission, NERC, and the presidency are aware of the crisis.

Gas-fired plants, which account for over 70% of Nigeria’s electricity generation, are the worst affected.

The Minister of Power, Adebayo Adelabu, had earlier assured stakeholders of efforts to address payment backlogs, noting that the government began offsetting parts of the debt in April.

However, only N205bn has been paid, leaving the sector in turmoil.

The suspension of gas supplies triggered a collapse of the national power grid on Wednesday—the 12th this year—leaving millions without electricity.

Power generation, which had peaked at 4,013 megawatts earlier in the day, dropped to zero by 2 pm, according to grid operators.

Distribution companies confirmed the crisis, citing loss of grid supply as the cause of outages across their service areas.

“We are working with stakeholders to restore normalcy as soon as possible,” Abuja Distribution Company announced.

Similarly, Jos Disco assured customers of ongoing efforts to stabilise the situation.

Kunle Olubiyo, President of the Nigeria Consumer Protection Network, called for a forensic audit of the sector’s debt claims.

He criticised the hybrid public-private ownership model of the power industry, describing it as prone to inefficiencies and corruption.

“The government must fully privatise the sector to eliminate undue interference and enhance accountability,” he argued.

Meanwhile, NMDPRA has denied issuing a directive to halt gas supplies, dismissing the claims as “unfounded.”

A statement from the regulator emphasised its commitment to ensuring uninterrupted gas supply to power plants, especially during the festive season.

Industry experts warn that the impasse could further erode public confidence in Nigeria’s energy sector, urging prompt intervention to prevent a prolonged crisis.

“Without a sustainable payment framework, the entire value chain will continue to face disruptions,” a sector analyst cautioned.

As Nigerians endure another blackout, the blame game between stakeholders highlights deeper systemic challenges.

Resolving these issues will require not just debt payments but also structural reforms, ensuring reliable power for the nation’s future.