Business
Domestic Gas Supply To GenCos Rises By 20.2% In Q1’21
Domestic gas supply to gas fired generating plants (GenCos) across the country rose significantly by 0.51million standard cubic feet per day (mmscfd) to 2,505mmscfd in the first quarter (Q1) of 2021.
This is 20.2 per cent increase when compared to 2,000mmscfd recorded in the corresponding period of 2020, data contained in the Nigerian National Petroleum Corporation (NNPC), Financial and Operations Report for the month of April, 2021 has shown.
According to the report, a total of 795mmscfd was delivered to gas fired power plants to generate an average power of about 3,416MW of electricity in April, 2021.
It was gathered that this is a decline of 6.0 per cent when compared 844mmscfd supplied in March, 2021 to generate 3,530MW.
The generation sub-sector includes 23 grid-connected generating plants in operation with a total installed capacity of 10,396MW (available capacity of 6,056MW) with thermal-based generation having an installed capacity of 8,457.6MW (available capacity of 4,996MW), and hydropower having 1,938.4MW of total installed capacity with an available capacity of 1,060MW.
However, the report also indicated that a total of 2,355mmscfd of gas was sent to the generating plants in the fourth quarter of 2020, an increase of six per cent when compared to Q1’2021.
A breakdown of gas distribution figures showed that a total of 209.27Billion Cubic Feet (BCF) of natural gas was produced in the month April, 2021, translating to an average daily production of 6,975.72mmscfd.
For the period April, 2020 to April, 2021, a total of 2,902.52 BCF of gas was produced representing an average daily production of 7,369.76mmscfd during the period.
Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 62.07 per cent, 19.95 per cent and 17.98 per cent, respectively, to the total national gas production.
According to the NNPC report, out of the 206.40BCF of gas supplied in April, 2021, a total of 126.83BCF of gas was commercialized; consisting of 42.92BCF and 83.91BCF for the domestic and export market, respectively.
This translates to a total supply of 1,430.90mmscfd of gas to the domestic market and 2,976.94mmscfd of gas supplied to the export market for the month.
This implies that 61.45 per cent of the average daily gas produced was commercialized while the balance of 38.55 per cent was re-injected, used as upstream fuel gas or flared.
Gas flare rate was 9.74 per cent for the month under review.
Total gas supply for the period April, 2020 to April, 2021 stood at 3,081.77 BCF out of which 548.34 BCF and 1,398.78 BCF were commercialized for the domestic and export market respectively.
Gas re–injected, fuel gas and gas flared stood at 1,134.64 BCF.
“Out of the 1,430.90mmscfd of gas supplied to the domestic market in April, 2021, about 794.79mmscfd of gas representing 54.54 per cent was supplied to gas-fired power plants while the balance of 636.11mmscfd or 44.46 per cent was supplied to other industries”.
Similarly, for the period of April, 2020 to April, 2021 an average of 1,313.32mmscfd of gas was supplied to the domestic market comprising an average of 778.76mmscfd or (59.30%) as gas supply to the power plants and 534.55mmscfd or (40.70%) as gas supply to industries.
The Federal Government has stated that plans are underway to reduce the price of gas for power generation companies in the country.
This, according to the Minister for Industry, Trade and Investments, Otunba Adeniyi Adebayo, was geared towards boosting the manufacturing sector competitiveness which has been hampered by power electricity supply.
Speaking at a roundtable discussion on the industrialisation of Africa organised by the Manufacturers’ Association of Nigeria (MAN), Adebayo, noted that Africa contributes less than two per cent to international trade, pushing it to the bottom of the global value chain.
He said this led to lower export trade volumes, lost job opportunities and reduced foreign exchange for players in the continent’s real sector.
According to him, all stakeholders need to work together towards developing measures to improve the cost competitiveness of the manufacturing sector in order for Nigerian industries to lead the transformation of the country and Africa’s economy.
Adebayo said, “For example, we are collaborating with the Ministry of Petroleum Resources to lower the cost of gas which is critical to the production of the energy sector. This is one factor that can improve the cost competitiveness of the sector.
“Another way that Nigerian industries can position themselves for the African economic transformation is by aligning themselves with the country’s industrialisation programme.”
Despite the rise in domestic gas supply, Nigerians have continued to lament over the epileptic power supply across the country.
The former President, Manufacturers Association of Nigeria (MAN), Mr Frank Jacobs, stated, “It is possible to gauge the loss suffered by manufacturers arising from paucity of electricity supply and high cost of alternative energy source. Capacity utilization in the sector has barely been above 50 per cent.
“This implies that the production has been sub-optimal; production value in the sector was estimated at N8.38trillion in 2016. Another way of measuring the loss to manufacturers as a result of the challenges of electricity supply is by looking at the huge cost of alternative energy which was estimated at N129.95billion as at 2016.
“Even though the sector, especially the distribution aspect has been privatised, it is important that government should find ways and means of supporting the DisCos until a stable, quality and reasonably priced electricity is available to the manufacturing sector.
“There is need for government to continue to offer integrated support to all stakeholders on the NESI value-chain i.e. manufacturers, GenCos, TCN, and DisCos in terms of finance and expertise.”
A trader in Olodi-Apapa, Kazeem Onoja, said power supply was good when he moved to the area about eight years ago.
According to him, “Then, public power supply from PHCN was quite okay, we were having between 14 and 20 hours of power supply on most days. We knew their schedule – the days we are meant to have supply and the days we would not have except a major fault occurred.
“Power supply has steadily deteriorated as the area developed and more people come into the neighbourhood”.
On her part, Executive Secretary, the Association of Power Generation Companies (APGC), Joy Ogayi, said, “To bridge the gap between demand and supply of power, there is need for all parts of the power chain to be fully effective to bring about the installed capacity of 13,200MW to hungry consumers.
“However, this is not the case in the power sector in Nigeria.”
The Minister of State for Industry, Trade and Investment, John Enoh said this at the 8th annual induction and conference of the Chartered Institute of Project Managers of Nigeria (CIPMN).
He explained that abandoned projects continue to lock up public funds that could have been used for infrastructure development, industrial growth, job creation and essential social services.
Represented by the ministry’s Permanent Secretary, Chris Osa Isokpunwu, he said the impact goes beyond financial losses, as incomplete projects affect communities and limit access to important public services
He cited examples of that remain unopened, schools that cannot accommodate students, roads that fail to connect communities and electricity projects that have not delivered their intended benefits.
The Registrar-General and Chief Executive Officer of CIPMN, Henry Ifeanyi Mbadiwe, also identified poor project management as a major challenge affecting development in Nigeria.
He revealed that the institute had developed a project management curriculum for Nigerian universities, which has received approval from the National Universities Commission (NUC). The programme is expected to enable universities to offer project management as a bachelor’s degree.
Mbadiwe further referenced findings by the Presidential Projects Assessment Committee, which identified 11,886 ongoing federal capital projects in 2011, with an estimated financial commitment of ?7.78 trillion.
He noted that inadequate planning, supervision, accountability and implementation were among the factors contributing to the abandonment of projects across the country.
The minister called for stronger project management structures across ministries, departments and agencies to improve planning, monitoring and evaluation.
He added that the Federal Ministry of Industry, Trade and Investment had introduced a 90-day implementation reporting cycle to strengthen transparency and monitor the progress of government programmes.
Ikenga said the company remained committed to Nigeria’s power sector and would continue investing in its operations despite the challenging business environment.
He spoke in Lagos at the third edition of the Shell Power Conference, themed “Powering Nigeria’s Progress: Turning Ambition and Action into Sustainable Impact”.
The Transcorp Power chief said the company would sustain electricity generation, invest in its facilities and deliver value to shareholders.
“Transcorp Power is a long-term player, not a short-term player. This year has been challenging, but what is important is getting power to schools, hospitals and businesses to power progress,” he said.
Ikenga said the company’s focus on operational efficiency and investment had strengthened its contribution to Nigeria’s electricity supply.
He disclosed that since acquiring the Ughelli Power Plant in Delta State in 2013, Transcorp Power had quadrupled its available generation capacity.
He also said the company became the first privatised power generation firm to receive a post-privatisation discharge certificate after fulfilling all its privatisation obligations.
The company’s unaudited results for the nine months ended September 30, 2026, showed a profit before tax of N83.1 billion, while its profit-before-tax margin rose to 31.2 per cent from 29.6 per cent recorded in the corresponding period of 2025.
Its total assets rose to 11.7 per cent amounting to N629.5 billion, while shareholders’ funds grew 8.9 per cent to N199.8 billion. Cash and cash equivalents also rose to N10.3 billion, supported by improved collections.
On the company’s contribution to grid stability, Ikenga said Transcorp Power’s black-start capability enabled it to restart operations without relying on electricity from the national grid.
He explained that the capability allowed the company to support power restoration following grid disturbances, helping to restore electricity supply to homes, businesses and industries.
Ikenga noted that Nigeria had an installed electricity generation capacity of about 13,000 megawatts, with an estimated potential of 50 gigawatts, adding that realising the potential would require effective coordination across the entire value chain.
“Everything in the value chain has to work,” he said.
He called for stronger collaboration among federal and state governments, regulators and private-sector operators, alongside increased private investment, to build a sustainable electricity market.
This was contained in a statement issued on Thursday by his Senior Special Assistant on Communications and Press Secretary, Maryann Duke.
The statement said Oyedele pointed to “improved digital systems, including electronic invoicing, as a key driver behind a record of N33tn in government revenue collected between January and October 2026.”
The minister said the performance demonstrated the potential of technology to improve revenue administration, strengthen compliance and increase efficiency across government institutions.
Speaking on the theme, ‘Digital Sovereignty and Ethics: Guarding the Economy for the Next Generation,’ Oyedele warned that Nigeria risked losing substantial economic opportunities if it continued to depend heavily on foreign digital infrastructure.
Citing Nigerian Communications Commission figures, he disclosed that the country recorded more than 157 million active internet subscriptions as of May 2026.
He explained that these connections generated significant volumes of information through financial transactions, healthcare, education and taxation.
However, citing estimates from the Nigeria Data Protection Commission, Oyedele said as much as 90 per cent of the country’s data was hosted abroad.
According to him, the situation has implications for foreign exchange expenditure, employment opportunities, technological skills and Nigeria’s control over information generated by its citizens.
He compared the country’s reliance on foreign digital infrastructure with its historical dependence on imported refined petroleum products, warning against a situation where Nigerian data would be processed abroad and the resulting services sold back to domestic users.
The minister consequently advocated greater investment in local data infrastructure, technical expertise, cybersecurity and predictable regulations to enable Nigerian businesses to capture more value from the digital economy.
He clarified that digital sovereignty should not translate into technological isolation but should strengthen Nigeria’s capacity to participate competitively in international markets.
Addressing graduating students, Oyedele urged young Nigerians to become developers of technological solutions rather than remain primarily consumers of products created elsewhere.
He identified artificial intelligence as both a disruptive force and an opportunity for innovation, advising graduates to acquire relevant digital skills alongside critical thinking, creativity, sound judgement and integrity.
The minister also cautioned against irresponsible online behaviour, explaining that digital footprints increasingly influence employment prospects, commercial relationships and professional credibility.
Oyedele outlined five priorities for graduates, including continuous learning, value creation, integrity, responsible digital citizenship and active participation in national development.
“Your degree is evidence of what you have learned. Your competence will demonstrate what you can do. Your character will reveal who you truly are,” he told the graduating students.
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