The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Engr. Saidu Mohammed, has attributed Nigeria’s persistent electricity supply problems to weak commercial arrangements in the gas-to-power segment.

According to Vanguard, he stated that the issue is not due to a shortage of gas resources or insufficient generation capacity.

Mohammed pointed out that Nigeria currently produces about eight billion standard cubic feet of gas daily and exports large volumes through the Nigeria LNG company.

Despite this production level, he noted that the domestic gas market dedicated to power generation remains significantly underdeveloped.

He expressed concern that although the country has over 13,000 megawatts of installed generation capacity, actual power supply has remained stuck around 5,000 megawatts for more than two decades.

According to him, the frequent claim of “no gas” by power plants stems primarily from the lack of bankable and enforceable gas sales agreements.

Mohammed disclosed that currently only one or two power plants have commercially viable gas contracts in place.

He stressed that gas molecules will not flow without firm buyers backed by credible payment structures.

Mohammed said the Petroleum Industry Act (PIA) has introduced key reforms to close these gaps.

He explained that the PIA prioritises domestic gas supply for power generation, enables cost-reflective pricing, and strengthens regulatory oversight in the sector.

He added that NMDPRA remains committed to enforcing domestic gas supply obligations, improving pricing transparency, and accelerating the development of gas infrastructure.

These efforts, he said, are aimed at ensuring reliable and sustainable gas supply to power plants throughout the country.