Blackouts: Only 2 GenCos Have Firm Gas Supply Contracts, Says Adelabu

… Apologises to Nigerians, says grid supply to improve in 2 weeks

The minister of Power,  Adebayo Adelabu, yesterday revealed a shocking gap in Nigeria’s power sector, disclosing that “only two out of the 32 power plants connected to the national grid have firm gas supply  contracts at the moment.”

Adelabu  , who made the disclosure in a press briefing at Abuja, said, “Out of about 32 power plants that we have today, only two have firm gas supply contracts with the gas suppliers. Only two. Others don’t have supply contracts. They only take what they supply them. It is called “best endeavour basis.”

The minister also apologised to Nigerians for the ongoing blackouts, which he blamed on the recent decline in electricity supply on gas shortages to thermal plants, triggered by Middle East tensions boosting export demand. “Owing to the crisis in the Middle East, which has increased the demand for Nigerian gas,” he explained, noting that suppliers prioritise lucrative exports over the domestic market saddled with over N6 trillion in debts.”

“I want to apologise to Nigerians, officially now, coming from me as the Minister of Power, for this temporary issue that is leading to hardship being experienced, especially during this dry season, where there is so much heat everywhere,” Adelabu said.

“Businesses are being affected, schools have been affected, and industries have been affected.”

It is not our wish to find ourselves in this situation, but it is due to some factors that are actually beyond our control.”

Despite the disruptions, Adelabu assured citizens that the situation would soon improve, offering a clear timeline for restoring a better power supply.

“I can tell you, with the committee that we have set up, and commitments from gas suppliers, and the timeline for repair of the gas pipelines, two weeks from now, we should start seeing improvements in supply. Two weeks,” Adelabu said.

He explained that authorities already have projections for the completion of critical repairs, including those involving facilities operated by Seplat Energy, which are expected to restore gas supply to electricity-generating plants.

According to the minister, a dedicated committee has been set up to ensure gas producers meet their domestic supply commitments—an issue that has long limited power generation in the country.

Adelabu revealed that owing to the crisis in the Middle East, which has increased the demand for Nigeria gas.

He said that since exporting the gas is more attractive than supplying the domestic power market, which is indebted to the gas vendors, they would rather ignore sending the product to power plants.

According to him, the gas suppliers have restricted their sales to the power sector due to over N6 trillion in debt.

Of the N6 trillion owed to the sector, 60 per cent is to the gas suppliers,” the minister stated, adding that this has constrained supply to power generators. In a direct apology to suffering Nigerians, Adelabu promised swift relief. Asked when improvements would come, he replied firmly: “Two weeks from now, we should start seeing improvement in supply.”

He highlighted government interventions to settle debts and restart flows, including N501 billion from the N4 trillion debt restructuring Fund, raised from the bond market and being disbursed to beneficiaries.

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 adding another 20,000MW to the grid would require a $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 midstream, and downstream of the power sector value chain.

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.”

He said only public and private sector investment can raise the $100billion for the 20,000MW, which cannot come overnight.

The minister recalled that it was under the present administration that the country hit the highest available generation capacity of 6,001MW in April 2025.

He also said last year on March 2, the NESI recorded the highest energy transmission of 5,801MW.

Adelabu explained that the feat was attained because of the completion of the 700MW Zungeru power plant and the expansion of renewable energy through the mini-grid program.

He said the activities brought the installed energy generation capacity to 14,000MWin two years from the 13,000MW recorded in 2023.

He said although the transmission capacity is now 8,500MW, the target is 15,000MW.

Adelabu said, “For the first time in the history of Nigeria’s power sector, we achieved the highest available generation of 6,001 megawatts in April 2025.This is the highest ever. And in terms of transmission and distribution, we achieved the highest highest energy transmitted of 5,801 megawatts on the 2nd of March 2025.

” That is the highest ever achieved in the industry. This was made possible by the completion and integration of Zungeru hydro power plants of 700 megawatts, the rehabilitation of existing thermal plants, and the expansion of renewable energy through mini-grid programs. And all these have made the installed capacity of our energy generation to 14,400 megawatts within a period of two years, from 13,000 megawatts met on grant.”