FG considers urgent financial interventions to address Nigeria power tariff crisis threatening NNPC thermal plants and national electricity supply
[dropcap]T[/dropcap]he Nigeria power tariff crisis is pushing key thermal power plants towards operational risk, as the Federal Government weighs urgent financial interventions to prevent power outages and economic setbacks.
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During a high-level meeting at the NNPC Towers in Abuja, ministers and senior officials deliberated on strategic solutions to resolve growing challenges linked to tariff shortfalls and delayed payments in the power sector.
The session, chaired by Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, and the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, included leadership from the Nigerian National Petroleum Company Limited.
It centred on saving key infrastructure—particularly the Maiduguri Emergency Power Plant, Okpai IPP Phase 2, and Kano IPP Phase 1—from shutdown due to unresolved tariff gaps.
A statement issued by Louis Ibah, media aide to Ekpo, revealed that the NNPC expressed concerns over the sustainability of its gas-powered plants, citing slow payments and structural imbalances in the Nigeria Bulk Electricity Trading framework.
“NNPC Ltd warned that without timely intervention, power supply to key regions may be jeopardised, with potential economic and social impacts,” the statement noted.
Minister Ekpo described the situation as urgent and critical to Nigeria’s gas-to-power vision. “These plants are vital not just to regional development but to the national grid. We must resolve the financial bottlenecks stalling delivery,” he said.
Edun supported the call for intervention, urging collaborative action between ministries and stakeholders to forge a sustainable financial model.
“A sound, long-term payment and tariff structure is needed to maintain grid integrity and support economic growth,” the finance minister noted.
All parties agreed to meet with the Minister of Power, Adebayo Adelabu, in the coming days to draft actionable solutions.
Adelabu has recently declared that the government can no longer afford the ₦200bn monthly electricity subsidy,
placing further pressure on a sector already burdened by high debts, low cost recovery, and a failing metering system.
The failure of Distribution Companies (Discos) to recoup costs continues to affect payments along the power value chain, with billions of naira owed to both generation and gas supply companies.
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As the Federal Government moves towards cost-reflective tariffs, the outcome of these emergency deliberations could decide the future reliability of power supply in strategic regions of Nigeria.
Oreoluwa is an accountant and a brand writer with a flair for journalism.