The ongoing industrial dispute between Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has led to the shutdown of many power generation plants across the nation, significantly reducing the power supply to gas-powered facilities.
The Nigerian Independent System Operator (NISO) reported that these industrial actions within the supply chain have caused widespread gas shortages, resulting in a drop in power generation by 1,100 megawatts as of Sunday night.
NISO also noted that the available generation on the national grid plummeted from over 4,300 MW in the early hours of Monday, September 29, to around 3,200 MW at its lowest point.
As a result, many major cities, including Lagos and Abuja, are currently experiencing power outages, severely impacting the socio-economic activities of Nigerians.
In a statement released early Tuesday, September 30, NISO indicated that the situation has increased pressure on the grid, prompting emergency measures to stabilize supply and prevent a nationwide blackout.
To mitigate the issue, NISO reported that it has increased generation from major hydropower stations, adding over 400 megawatts (MW) to offset the shortfall from gas-fired plants.
The agency also mentioned that it has implemented real-time load adjustments, frequency support measures, and selective load shedding to ensure operational security.
NISO reaffirmed its dedication to proactive grid management and top-tier operational practices to ensure a reliable electricity supply despite ongoing challenges.
Read also:
- FG’s attempt to mediate Dangote Refinery, PENGASSAN feud fails
- Reactions as Dangote Refinery fires all Nigerian employees after PENGASSAN vote
- Shehu Sani urges Dangote Refinery to reinstate sacked workers
“The Nigerian Independent System Operator (NISO) wishes to inform the public about recent significant generation shortfalls on the national grid, caused by industrial actions from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) within the gas supply chain.
The ICIR reports that shutting down power-generating plants can lead to serious consequences, including potential losses for the machinery and, in some cases, grid collapse.
Regarding Tinubu’s CNG conversion initiative, experts in the power sector have expressed concerns about the increasing frequency of grid collapses affecting Generating Companies (GenCos) in Nigeria, noting that in 2024 alone, each company faced financial losses of at least N21,873,684,285.
Power sector expert Stephen Ogaji informed The ICIR that the inability to generate power for the grid not only results in significant revenue losses but also impacts the entire economic system that relies on a stable power supply.
Ogaji emphasized that grid collapses and forced shutdowns of thermal generating plants lead to reduced capacity utilization, which in turn decreases revenue for the stations, hampers gas efficiency, affects contracted gas utilization under take-or-pay agreements, and can cause deterioration or damage to essential mechanical and electrical equipment.
