Nigeria’s Power Plants Underutilized Due to Gas Shortage

A recent visit by Adebayo Adelabu, Nigeria’s Minister of Power, to the Olorunsogo and Omotosho power plants revealed that these facilities are operating significantly below their capacity due to a shortage of gas. The Olorunsogo plant, with an installed capacity of 750 megawatts, is only generating 87 megawatts, while the Omotosho plant, with a capacity of 500 megawatts, is generating just 125 megawatts.

Expressing his concern, Minister Adelabu highlighted the underutilization of these power installations, each operating below 25% capacity. He attributed this under-capacity utilization to various factors, primarily the shortage of gas supply to the plants. He emphasized the need to address turbine repairs and support the power plants to operate at an impressive capacity to enhance nationwide power supply.

During his visit, Minister Adelabu emphasized the government’s substantial investment in these power installations and stressed the need to improve their operational capacity and overall valuation before any potential disposition. He underscored the importance of ensuring that these facilities operate at their full potential, given their critical role in the country’s power generation landscape.

The minister also discussed the need for dialogue within the ministry to enhance the use of gas as a source of power generation. He proposed the migration to a cost-effective tariff system if government subsidies were not feasible. Moreover, he pledged to address the frequent drops in power generation caused by gas shortages and to offset part of the significant gas debts.

Chiedu Ugbo, Chief Executive Officer of the Niger Delta Power Holding Company Ltd., highlighted the company’s “Light-Up-Nigeria” program, designed to provide electricity at a cost-effective tariff to industrial clusters not connected to the grid. This initiative aims to ensure prompt payment for gas and strengthen liquidity while addressing the challenge of inadequate gas volumes for power generation.

In conclusion, Nigeria’s power sector faces significant hurdles, primarily stemming from gas shortages impacting power plant operations. The government’s commitment to addressing these challenges through improved gas supply, repairs, and tariff reforms offers hope for enhanced power generation and supply across the country.