The Nigerian National Petroleum Company Limited (NNPC) has challenged the explanation offered by the Nigerian Independent System Operator (NISO) for the country’s declining electricity generation, insisting that inadequate gas transportation is not responsible for the current crisis.
The disagreement followed NISO’s recent warning that limited gas supply to thermal power plants, alongside reduced water levels affecting hydroelectric stations, had contributed to the sharp decline in electricity generation.
But NNPC, in a statement issued on Saturday, maintained that its gas transportation infrastructure was fully operational and capable of delivering supplies to power plants and other customers.
The company’s Chief Corporate Communications Officer, Andy Odeh, said the network operated by NNPC Gas Infrastructure Company Limited was operating at 100 per cent availability, with no known transportation bottlenecks.
He added that NNPC had achieved a 10 per cent increase in gas production in 2026, reflecting investments aimed at strengthening supply capacity and improving the resilience of its gas infrastructure.
The national oil company argued that the availability of gas does not automatically translate into increased electricity generation, explaining that several other factors could prevent power plants from operating at full capacity.
It identified maintenance activities, commissioning processes and the inability of some generation companies to receive available gas as possible reasons for reduced output.
NNPC also cautioned against treating gas production, commercial supply, transportation and the operational readiness of power plants as a single issue, insisting that each component of the gas-to-power chain must be independently examined.
On electricity pricing, the company explained that gas transportation charges account for approximately 10 per cent of electricity tariffs, while gas supply and other generation-related expenses make up the remaining 90 per cent.
It called for greater coordination among gas producers, transporters, electricity generation companies and NISO to establish the actual reasons behind the persistent decline in power generation.
NNPC further proposed a joint assessment of the entire gas-to-power value chain, arguing that identifying specific operational and commercial constraints would provide a more effective solution than attributing the crisis solely to gas shortages.
The disagreement comes amid worsening electricity supply across several parts of the country, with households and businesses increasingly struggling with prolonged outages and unreliable power supply.