Headlines
Gas Producers Cut Supply to Gencos over N2.7tn Debt
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 producers on who should collect the 0.5 per cent wholesale price levy imposed on petroleum products by the Petroleum Industry Act made the suppliers demand the payment of monies owed.
Speaking during the interview, APGC CEO Dr Ogaji stated that all relevant authorities, including the presidency, have been notified of the current situation and are awaiting the necessary interventions.
She added that debt, which hovered around N2tn earlier this year, has increased to N2.7tn.
She said, “It is no longer a matter of NMDPRA giving a directive. They have already stopped the supply of gas to power-generating companies.
“They (gas suppliers) have halted the supply. They have already informed our gencos that they are not going to be supplying gas anymore until what is outstanding is settled and it didn’t happen today.
“We have told the Nigerian Electricity Regulatory Commission, they are already aware of the situation. There is nobody who would say they are not aware; the minister is aware, and the presidency is aware.
“The total debt has now increased to over N2.7tn and you know that 70 per cent of thermal Gencos invoice is gas.
“They have been paying a small amount. So, when they pay us nine per cent, we just calculate nine per cent of our gas invoice and send it to the gas supplier because that is the only way to survive. We are all sharing in the poverty that NBET is giving us.”
The halt in supply has disrupted the energy sector, leading to growing concerns about energy shortages and operational instability nationwide.
Already on Wednesday, Nigerians were plunged into darkness following another collapse of the national power grid.
This is the 12th time the grid would collapse in the year.
Our correspondent reports that the grid went off at about 1:36 pm on Wednesday afternoon.
It was observed that power generation was 0.00 megawatts as of 2 pm.
Source: The Punch
World-renowned boxer Anthony Joshua on Monday survived a ghastly road accident in Makun, Ogun State.
Eyewitnesses report that the incident occurred along a busy highway of the Lagos-Ibadan expressway.
The vehicle carrying Joshua, a Lexus Jeep with the number plate, KRD 850 HN, reportedly collided with a stationary truck under circumstances that are still being investigated.
Joshua reportedly sustained minor injuries, while two persons were said to have died on the spot.
Former Vice President Atiku Abubakar has cautioned that any attempt to hurriedly re‑gazette Nigeria’s new tax laws could undermine parliamentary oversight and set a dangerous constitutional precedent.
Atiku’s warning follows public scrutiny over reports that the Tax Reform Acts signed by President Bola Tinubu differ from the versions passed by the National Assembly. Lawmakers, including Abdussamad Dasuki, raised concerns that the alterations could pose serious legal and constitutional risks, noting that they were not backed by any constitutional framework.
In a statement on X, Atiku said the directive to re-gazette the Acts effectively confirms “that the gazetted version of the Tinubu Tax Act does not reflect what was duly passed by the National Assembly,” calling it “a grave constitutional issue.”
He emphasized that under Section 58 of the 1999 Constitution, a bill only becomes law after passage by both chambers, presidential assent, and gazetting.
“Gazetting is merely an administrative act of publication. It does not create, amend, or validate a law,” Atiku said, adding that any post-passage insertion, deletion, or modification without legislative approval constitutes forgery rather than a clerical error.
Atiku further warned that rushing a re-gazetting while legislative investigations are ongoing “undermines parliamentary oversight and sets a dangerous precedent,” stressing that the only lawful approach is “fresh legislative consideration, re-passage by both chambers, fresh presidential assent, and proper gazetting.”
The former vice president clarified that his position is not opposition to tax reform but a defence of constitutional order.
“This is a defence of the integrity of the legislative process and a rejection of any attempt to normalise constitutional breaches through procedural shortcuts,” he said.
The Federal government has denied wrongdoing, insisting the laws will take effect as scheduled on January 1, 2026, while the National Assembly has directed the issuance of Certified True Copies of the Acts to ensure clarity and accuracy.
Barring unforeseen circumstances, the Labour Party (LP) Presidential Candidate in the 2023 elections, Mr. Peter Obi, is set to formally join the African Democratic Congress (ADC) on December 31, 2025.
The development would put to rest months of speculation about where the former Governor of Anambra State would pitch his tent in the coming elections.
Reports claim that Obi would be defecting with serving senators and other lawmakers elected on the platform of the LP, as well as remnants of the Peoples’ Democratic Party (PDP) in the South East region.
Specifically, Obi would be defecting alongside the Senator representing Anambra Central, Victor Umeh; that of Anambra North, Tony Nwoye; Abia South, Enyinnaya Abaribe; PDP chieftain Ben Obi; and members of the Obidient movement in the region.
It is not clear if the Abia State governor, Alex Otti, is part of the planned movement to the ADC.
The governor was recently approached by the PDP to join the party and re-contest his current position in 2027.
Further reports quoted Obi’s spokesperson, Valentine Obienyem, as confirming the planned defection of his boss to the ADC.
“Yes, it is true,” he reportedly said on Sunday.
Senator Umeh said the event would hold in Enugu, adding that it would involve all Obi’s supporters across the South East region.
“They will come from Abia, Anambra, Ebonyi and Imo states to join those in Enugu, where this exercise will hold on 31st December,” he reportedly added.
Sources hinted that Obi, who has not hidden his intention to appear on the ballot in 2027, would contest the presidential ticket of the ADC.
On his part, Chief Chekwas Okorie, reportedly said that the expected formal defection of Obi to the ADC is a healthy development that could reshape the thinking and permutations of the 2027 general elections.
“I imagine that he would be defecting along with most of his associates and followers. I believe that a fortified and strong ADC will add value to the opposition and assuage the general fear of a possible one-party option to Nigerians come 2027. The APC, ADC and possibly the PDP locking horns in the 2027 democratic encounter promises a vibrant and robust electioneering campaign that will provide Nigerians the required options to make informed choices in electing their preferred leaders at all levels. I imagine that the APC leadership will return to the drawing table to map out the strategy to confront the emerging challenge. Nigerians are in interesting times,” Okorie stated.
National President of Njiko Igbo Forum (NIF), Rev Okechukwu Obioha, vouched support for Obi to ensure he reaches the pinnacle of his political career. He, however, cautioned that the ADC should not compromise merit and integrity in the choice of its presidential candidate, stressing that Obi remains the “hope for the restoration of the country on the path of greatness.”
