The 11 power Distribution Companies (DisCos) yesterday received 2,793 Megawatts(MW) of electricity from the Nigerian Electricity Supply Industry (NESI).

The leap from the zero MW supply to 10 discos as of Sunday is expected to bring relief to electricity users in many parts of the country, including a commercial capital Lagos.

How the feat was achieved was not made known by NESI, going by the fact that gas supply to Generation Companies(GenCos) had, as of yesterday, not improved.

Power Minister Adebayo Adelabu, at a news conference in Abuja, attributed the worsening outages in the country to a lack of gas supply to thermal stations.

But he assured consumers that improved electricity would be available in the next two weeks. Adebayo also insisted that 6,000MW will be achieved before December.

A breakdown of the 2,793MW sent by NESI, the nation’s power system operator, showed Abuja DisCo receiving 503MW. It was followed by Ikeja DisCo, 497MW; Eko DisCo, 424MW; Ibadan DisCo 314MW; Benin DisCo, 212MW; Enugu DisCo, 203MW; Port Harcourt DisCo, 183MW; Kano DisCo, 142MW; Kaduna DisCo, 133MW; Jos DisCo, 119MW; and Yola DisCo 63MW.

Shortly after receipt of the supplies, one of the DisCos, the Port Harcourt DisCo, apologised to its customers for the outages.

Adelabu, who on Thursday said the Federal Government had taken decisive steps to address persistent gas supply challenges in the power sector, told reporters yesterday that the Middle East tension had exacerbated the problem.

The minister apologised to Nigerians, saying it was necessary to do so given the extreme heat and disrupted businesses in the country.

Adelabu explained that the Middle East crisis led to increased demand for Nigeria’s gas, a development that producers cashed in on because of its lucrativeness

The producers, according to him, are also uninterested in vending to the Nigerian power sector due to indebtedness.

The minister explained that of the N6 trillion owed by the sector, 60 per cent is to the gas producers.

Asked to be specific on when Nigerians should expect improved power supply, he replied: “Two weeks from now, we should start seeing improvement in supply.”

On the exact amount owed GenCos, Adelabu recalled that as of 2024, the audit showed N2.8 trillion. He clarified that after reconciliation, it was N4 trillion.

According to him, it has been a back-and-forth discussion as the GenCos insist they are owed N6 trillion.

He said : “I can tell you that the amount we owe GENCOs, which is estimated and is being reconciled, when we said N4 trillion as at the end of 2024, it was audited and it was agreed at 2.8 trillion or so, because of the interest elements and the effects throughout the element of it.

“And the number of the GENCOs has been agreed upon, while some are still discussing back and forth. But now that we are talking about N6 trillion for the GENCOs, by the time they are done with the reconciliation, it will probably be about N4 trillion total.

“So, what I can tell you is that a proportion of this, which is no less than 60 per cent, is being owed to the gas suppliers.”

The minister explained that the government has made some financial interventions to settle the debts.

The interventions include the N4 trillion restructuring to defray the outstanding unpaid subsidies of the GenCos.

Adelabu added that the government raised N509 billion out of the N4trillion from the bond market, which is already being disbursed.

The measure, according to him, is targeted at encouraging the GenCos and gas suppliers.

He said: “There were also financial interventions, which include initiation of the 4 trillion debt restructuring to defray the outstanding unpaid subsidies to the power-generating companies.

“N501 billion out of this has been raised from the bond market and is being disbursed to the beneficiaries. We believe this will encourage the power generation companies as well as gas supply companies.”

Adelabu had earlier said that in the next few weeks, generation, transmission and distribution would be improved.

He also explained that only two of the 32 power plants connected to the national grid have gas supply contracts at the moment.

The other ones, according to him, supply gas to the GenCos on a ‘best endeavour’ basis.

“I can tell you, out of about 32 power plants that we have today, only two have firm gas supply contracts with the gas suppliers don’t have supply contracts. They only take what they supply them. It is called the best endeavour basis.”

He said the ministry rose from a meeting with power sector stakeholders where it projected that there was a need for private sector investment in the industry.

Adelabu said that for the country to add another 20,000MW to the grid, it would require $100 billion investment in the entire value chain.

Giving the breakdown of the required investment, he said, “Put together, we’re talking of over $100 billion of investments in the upstream, in the Put together, we are talking of over $100 billion of investments in the upstream, in the midstream, and downstream of the power sector value chain.” (The Nation)

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