NNPC Disputes NISO's Gas Shortage Claim, Reports 10% Production Growth

The Nigerian National Petroleum Company Limited (NNPC) has disputed the Nigerian Independent System Operator's (NISO) claim that gas supply constraints are contributing to declining electricity generation. NNPC stated that its gas transportation network is available to deliver supplies to power plants without operational restrictions. This clarification comes after NISO attributed reduced electricity generation partly to limited gas availability and declining water inflows to hydroelectric power stations on November 5.

NNPC's subsidiary, NNPC Gas Infrastructure Company Limited (NGIC), reported no transportation-related constraints within its network that could explain the decline in power generation. The company's operational records indicate that Nigeria's gas production volumes have increased by about 10 per cent year-to-date in 2026. This growth is attributed to ongoing efforts to implement the Federal Government's gas development and monetisation agenda.

According to NNPC, gas transportation infrastructure remains available to support deliveries to power-generating stations nationwide. The company remains committed to providing safe, reliable, and efficient gas supply and transportation services. However, NNPC acknowledged that the availability of transportation infrastructure does not, on its own, establish whether sufficient gas is being commercially supplied or delivered to individual power plants.

A comprehensive assessment of the electricity generation shortfall must examine gas production, commercial supply arrangements, actual deliveries to power plants, and gas offtake levels. The operational readiness of generating units and plant maintenance schedules are also factors that must be considered in determining the causes of reduced electricity generation. NNPC called for a coordinated review of operational data involving gas suppliers, transporters, power generators, and NISO.

The review aims to identify specific constraints across the gas-to-power value chain and establish the causes of the generation shortfall. Accurate reporting and collaboration among stakeholders are necessary to guide effective interventions. The development highlights differing assessments of the gas-to-power supply chain, with NISO identifying limited gas availability as one of the factors affecting electricity generation.

NNPC maintains that its transportation infrastructure has no operational constraints, and the company remains committed to strengthening energy infrastructure and working with industry stakeholders. The goal is to translate Nigeria's gas resources into more reliable electricity supply. The NNPC's clarification and data underscore the complexity of the issues affecting electricity generation in Nigeria.

The gas production growth and availability of transportation infrastructure are positive developments, but a thorough analysis of the gas-to-power value chain is necessary to address the generation shortfall. Key factors to consider include gas production, commercial supply arrangements, and the operational readiness of generating units. Effective interventions will require collaboration and accurate reporting among stakeholders.

Key points

• NNPC reports 10% growth in gas production year-to-date in 2026.
• NNPC disputes NISO's claim of gas supply constraints affecting electricity generation.
• A coordinated review of operational data is necessary to identify specific constraints across the gas-to-power value chain.