Ekpo laments Nigeria’s power generation stagnation at 5,000MW, says gas sector reforms impacting on industrial growth, public health

FAVOUR ISHEMBER, Abuja

The Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, says the distribution program of Free LPG Cylinder across all six geopolitical zones of the country,has significantly accelerated the adoption of clean cooking, reduced deforestation, improved public health, and supported the nation’s net zero ambitions.

Speaking on Thursday, at the Nigeria international Energy Summit holding in Abuja, Nigeria,  with the

Theme: “Unlocking Nigeria’s Gas Advantage for Power, Industry and Growth,” Ekpo said the achievements demonstrate the administration’s resolve to transition from policies on paper to real impact in households, industries, and communities across Nigeria.

On other achievements in advancing Nigeria’s gas agenda, the Minister said the administration successfully championed the domestication of LPG volumes produced by upstream operators

According to him, the intervention has increased LPG availability for domestic consumption, stabilized the price of this critical household commodity, and reduced exposure to international price volatility, bringing relief to millions of Nigerian homes.

The Minister noted that working closely with the power sector, the administration has achieved the long awaited resolution of legacy debts owed to gas producers, following Presidential approval and ratification by the National Economic Council.

Ekpo explained that this landmark achievement has restored confidence in the domestic gas market and is unlocking new investments in gas supply for power generation.

To power the nation’s industrialization ambitions, the Minister said the administration is strengthening the entire gas-to-power chain

This, according to him, is being done through strategic focus on long term, commercially viable gas supply agreements for power plants.

Also through sustained implementation of the NEC approved debt resolution framework.

 Expansion of critical infrastructure—pipelines, processing plants, and metering systems.

 Deepened collaboration with the power sector to eliminate bottlenecks; Establishment of a National Gas Infrastructure Command Centre to monitor, coordinate, and optimize gas infrastructure nationwide, as approved by President Tinubu.

While reiterating that gas fuels over 70% of Nigeria’s on grid electricity generation, Ekpo submitted that, on policy, the Petroleum Industry Act (PIA) has provided a transparent, commercially grounded framework for investment in the sector.

Noting that the Ministry is working closely with Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian National Petroleum Company Limited (NNPC Ltd.), and private sector partners to ensure cost-reflective pricing.

Also  simplify licensing processes; Grow local content; Shorten project delivery timelines.

According to him, Nigeria is not just a market of promise, but a platform of reform, resilience, and sustainable returns.

Ealier , the Authority Chief Executive of the NMDPRA, Engr. Saidu Mohammed expressed disappointment with Nigeria’s stagnant electricity generation, stating that despite having a generation capacity of 13,000 megawatts, the country is only producing around 5,000 megawatts.

 “During the First or second year of Obasanjo’s regime, we celebrated 4,500 megawatts of electricity generated at that time.

 25 years later we are still hovering around 5,000 megawatts. It is rather unfortunate,” he said.

Mohammed attributed this to the lack of bankable commercial gas sales agreements, stating that only one or two power plants have such agreements.

 “If we don’t move the commerciality, we will not move those molecules called gas,” he emphasized.

He stressed that gas is an economic enabler, and without it, there is no sustainable power, industrial growth, or economic development.

 “Without power, there is no industrial growth. And without industrial growth, there is no economic development. And that is what gas is supposed to do, revitalize this economy of ours,” he said.

Mohammed highlighted the potential of gas-based industries, such as fertilizers and petrochemicals, to drive value addition and exports.

“There is no reason why Nigeria cannot be an exporter of all derivatives that we can derive from natural gas,” he added.