Power
NNPC denies gas network role in national power generation decline
The Nigerian National Petroleum Company Limited has stated that its gas transportation infrastructure is fully available, disputing claims linking network constraints to recent power outages.
Key points
- NNPC says its pipeline network operated by NGIC has no transportation constraints.
- The statement follows reports from NISO and the Minister of Power citing gas supply issues.
- NNPC calls for a comprehensive review across the gas-to-power value chain.
What happened
The Nigerian National Petroleum Company Limited (NNPC) has rejected claims that limitations in its gas transportation network are responsible for the ongoing drop in electricity generation across the country. Premium Times reported that the state oil company issued a statement on Saturday through its Chief Corporate Communications Officer, Andy Odeh, asserting that pipelines operated by the NNPC Gas Infrastructure Company Limited (NGIC) are fully available to deliver gas to power plants nationwide.
The clarification follows recent remarks by the Nigerian Independent System Operator (NISO) and Minister of Power Joseph Tegbe. NISO previously pointed to limited gas availability and low water levels at hydro plants as drivers of lower output, while Mr Tegbe cited scheduled maintenance at the Egbin Power Station alongside fuel supply constraints affecting thermal stations. Power supply in major centers such as Lagos and Abuja has dipped recently, intensifying difficulties for households and businesses already managing high fuel prices.
NNPC maintained that the availability of transport infrastructure must be distinguished from actual gas production, commercial arrangements, and plant-level offtake. The company urged industry stakeholders to conduct a coordinated review of operational data across the entire gas-to-power value chain to pinpoint the real causes of shortfalls. It also highlighted that its gas development efforts have yielded a year-to-date increase in production volumes of approximately 10 per cent in 2026.
Why it matters
Reliable electricity remains a central bottleneck for industrial and domestic consumers in Nigeria, where electricity use per person stood at 140.6 kWh in 2024, according to World Bank figures. This contrasts sharply with the global average of 3,708.5 kWh for the same year, underlining the scale of the energy deficit. While national electricity access was recorded at 62.5 per cent in 2024 by the World Bank, recurring grid failures undermine commercial productivity and drive businesses toward costly alternative fuels like diesel. Resolving disputes over accountability across gas suppliers, transporters, and generators is critical for investors and regulators seeking to stabilise the power sector and restore confidence in Nigeria's gas monetisation framework.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
62.5% of people in Nigeria had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
