NNPC Rejects Gas Transportation Constraints as Cause of Nigeria’s Declining Electricity Generation

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…National oil company says its gas pipeline network remains available, reports 10% growth in gas production in 2026 and calls for a joint industry review of power generation challenges.

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has dismissed claims that constraints in its gas transportation infrastructure are responsible for Nigeria’s recent decline in electricity generation, maintaining that its pipeline network remains available to supply gas to power plants across the country.

The clarification followed a report by the Nigerian Independent System Operator (NISO) on November 5, 2026, which attributed the decline in electricity generation to limited gas availability and reduced water inflows into hydroelectric power stations.

In a statement issued on November 6, 2026, in Abuja, NNPC Ltd.’s Chief Corporate Communications Officer, Andy Odeh, said operational records of its subsidiary, NNPC Gas Infrastructure Company Limited (NGIC), showed no transportation-related constraints within its network that could account for the recent reduction in electricity generation.

The national oil company also disclosed that its gas production volumes had increased by approximately 10 per cent year-to-date in 2026, maintaining that gas supply availability should not be confused with limitations in transportation infrastructure.

“Gas supply availability is therefore not a challenge as NNPC remains committed to supporting efforts to improve electricity generation through safe, reliable and efficient gas supply and transportation,” the statement said.

NNPC Explains Gas-to-Power Challenges

While defending the operational capacity of its gas transportation network, NNPC Ltd. acknowledged the need to distinguish between pipeline infrastructure availability, gas production, commercial supply arrangements and actual gas deliveries to individual electricity generation companies.

The company explained that the availability of transportation infrastructure alone does not automatically guarantee that power plants will receive and utilise the required volumes of gas to generate electricity.

According to NNPC, a comprehensive assessment of Nigeria’s electricity generation challenges must also consider the availability and operational readiness of generating units, maintenance schedules and the actual volume of gas taken by power plants.

These factors, it noted, play important roles in determining how effectively gas supplied to electricity stations is converted into power for distribution to consumers.

NNPC Calls for Joint Review of Electricity Generation Shortfall

To address the conflicting assessments of the challenges affecting electricity generation, NNPC Ltd. has called for a coordinated review of operational data involving gas suppliers, transportation companies, power generators and the Nigerian Independent System Operator.

The proposed collaboration is expected to help identify specific bottlenecks across the gas-to-power value chain and establish appropriate interventions to improve electricity generation.

The company emphasised that accurate reporting and transparent information sharing among industry stakeholders are essential to resolving the challenges affecting Nigeria’s electricity supply.

“Accurate reporting across the gas-to-power value chain is essential to resolving the challenges and sustaining public confidence,” the statement added.

NNPC Reaffirms Commitment to Reliable Gas Supply

NNPC Ltd. reiterated its commitment to developing dependable energy infrastructure and working with relevant stakeholders to strengthen Nigeria’s gas-to-power value chain.

The company expressed confidence that Nigeria’s abundant natural gas resources could support improved electricity generation if production, transportation, commercial arrangements and power plant operations were effectively coordinated.

The latest clarification comes amid continuing concerns over electricity generation and supply in Nigeria, where gas-fired power plants account for a significant share of the country’s grid-connected electricity generation.

The company said it remained committed to constructive collaboration with industry stakeholders to ensure that the country’s gas resources translate into more reliable electricity supply for households, businesses and industries.

 

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