Nigeria’s energy sector is once again at a defining moment, with stakeholders raising serious alarms over unsustainable electricity and gas pricing that, if unaddressed, could plunge the nation’s gas-to-power sector into a staggering ₦6 trillion debt.
Speaking at the Nigerian Oil and Gas (NOG) Energy Week in Abuja, experts didn’t mince words. The message was clear: unless the country adopts a more realistic, cost-reflective electricity tariff system, efforts to power Nigeria sustainably will collapse under financial strain. The current average tariff—₦116 per kilowatt-hour—is simply too low to sustain operations, especially with ambitions to expand generation to 10,000 megawatts.
Analysts pointed to Band A’s rate of ₦204/kWh as closer to the mark, noting that without sufficient liquidity, gas suppliers remain unpaid, infrastructure upgrades stall, and investor confidence dwindles.
“We cannot legislate gas prices into feasibility,” one oil and gas operator lamented. “Investors need certainty and a fair return. Otherwise, we’ll keep going in circles.”
On the sidelines of the conference, the Federal Government also issued a stern warning to oil firms hoarding or underutilizing fields. Minister of State for Petroleum (Oil), Heineken Lokpobiri, made it plain: “Either develop your assets or lose them. No more sitting on valuable oil blocks while production suffers.”
Lokpobiri added that the newly revamped NNPC Limited board has been tasked with reviewing operatorship arrangements to ensure productivity. “We’ve done the reforms. Now we need results,” he said.
Echoing the urgency, Abdulrazaq Isa, Chairman of the Independent Petroleum Producers Group (IPPG), described Nigeria’s oil sector as being in a “critical phase,” where production targets like three million barrels per day are within reach—but only if everyone pulls their weight. He said recent asset transfers to local producers present a golden opportunity.
“These assets are in good hands,” Isa said. “Our members are ready, but we need financing, skilled partnerships, and full community engagement to unlock their potential.”
In a virtual keynote, OPEC Secretary General Haitham Al Ghais also weighed in, warning of the global risks of underinvestment. He quoted an African proverb to drive home his message: “If you want to go fast, go alone. If you want to go far, go together.”
He called for urgent collaboration, innovation, and investment across Africa’s energy landscape, emphasizing that hydrocarbons will still be essential in the global energy mix for decades.
Meanwhile, in the power sector, a quieter but equally significant transformation is taking place.
The Nigerian Independent System Operator (NISO) officially unveiled its new identity in Abuja, signaling the country’s latest step toward electricity sector reform. The event marked NISO’s emergence as an autonomous body distinct from the Transmission Company of Nigeria (TCN)—a change mandated by the 2023 Electricity Act.
“For the first time, system operations in Nigeria will be truly independent,” NISO CEO Abdu Bello Mohammed said. “We’re now free to coordinate the grid with fairness, transparency, and efficiency.”
Mohammed also announced a digitisation drive in collaboration with Huawei, including smart grid technologies, real-time system monitoring, and upgraded SCADA infrastructure. He reiterated that Nigeria must stop operating in isolation, calling for full integration into the West African Power Pool (WAPP).
“This isn’t just about power. It’s about progress,” he said. “We can’t keep talking reform—we must live it.”
As Nigeria battles to fix its broken power system, ramp up oil production, and establish a fair energy pricing regime, one thing is evident: the time for talk is over. Only bold action and coordinated strategy will keep the lights on—and the economy growing.
