Nigeria's Gas, Petrol Supply Threatened as NNPC Face Power Tariff Challenge

• The FG is urgently working to resolve electricity tariff and payment issues threatening gas supply to NNPC-run power plants
• Officials raised concerns over delayed payments and tariff shortfalls that could disrupt the power supply and harm the economy
• The government plans to engage in further talks to find sustainable financial solutions, as the sector grapples with mounting debts

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.

The Federal Government is planning urgent action to fix problems with electricity tariffs that are disrupting gas supply and payments at major power plants run by the Nigerian National Petroleum Company Limited (NNPC).

This was discussed during a meeting in Abuja at the NNPC Towers, involving the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo; the Minister of Finance, Wale Edun; and top officials of NNPC, including Dr. Salihu Jamari, who stood in for the Executive Vice President of Gas, Power, and New Energy.

FG steps in over unpaid debts

A statement from Ekpo’s media aide, Louis Ibah, stated that the talks focused on resolving financial and policy issues affecting power stations in Maiduguri, Okpai (Phase 2), and Kano (Phase 1).

NNPC officials raised concerns about delayed payments and pricing gaps in the electricity market that threaten the survival of these gas-powered plants.

They warned that without quick action, the power supply in critical areas could be at risk, which would negatively affect the economy and daily life.

The statement read:

“NNPC Ltd warned that without timely intervention, power supply to key regions may be jeopardised, with potential economic and social impacts.”

Ekpo emphasised that resolving these issues is crucial for maximising the potential of Nigeria’s gas-to-power systems, particularly in regions such as Maiduguri and Kano, and for enhancing supply to the national grid.

FG appeals to key oil sector players

Finance Minister Edun agreed, saying all key players must work together to create a solid financial plan that will keep these power stations running and support national development.

The meeting ended with a plan to involve the Minister of Power in a follow-up meeting to find workable solutions as soon as possible.

Nigeria’s power sector is struggling with financial challenges, made worse by subsidies and low metering coverage.

Although the government pledged to subsidise electricity for most consumers, it says it can no longer afford the N200 billion monthly cost.

This has left electricity distribution companies unable to collect enough revenue, leading to large debts owed to power generators and gas suppliers.

NNPC raises petrol prices across Nigeria

In related news, Legit.ng reported that the NNPC Limited has once again increased the pump price of petrol. The cost per litre in Lagos has risen from N915 to N925.

This adjustment comes shortly after the company implemented a nationwide hike in the price of Premium Motor Spirit (PMS).

A check on Wednesday, June 25, 2025, revealed that NNPC filling stations in Lagos have updated their price boards to reflect the new rate of N925 per litre.

Source: Legit.ng