Adaobi Rhema Oguejiofor

The Nigerian Electricity Regulatory Commission (NERC) has cautioned that a significant drop in Nigeria’s crude oil production will result in the reduced availability of natural gas for power plants, and this will have an impact on electricity production.

The Commission made this known in its latest quarterly report, where it addressed the issues surrounding power generation risks in the country. According to the report, 75 percent of the available power generation capacity in Nigeria is gas-based.

The report revealed that most of the power plants in the Nigerian Electricity Supply Industry (NESI) are dependent on associated gas, which is produced during crude oil exploration. 

“In addition to the seasonal variability affecting the hydro plants, NESI also has significant challenges with gas availability as 75 percent of available generation capacity is gas-based. Most of the power plants in the NESI are dependent on “Associated Gas,” which refers to a gas that is produced during crude oil exploration. 

This puts the plants at an added level of exposure because significant drops in crude oil production will also mean reduced gas availability to run the plants,” the statement read in part.