Grid Instability: NMDPRA Distributes Gas Licenses to Offtakers Amid Persistent Challenges

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has initiated the issuance of gas licenses to industry stakeholders, a strategic move to address the recurrent failures of the national grid. Following a tumultuous 2024 that witnessed over ten instances of grid collapse, the year has already recorded its first occurrence, leaving vast regions of the nation shrouded in protracted darkness.

In a statement released on Monday by the NMDPRA’s media unit and endorsed by Jemilah Adama, the authority emphasized that this initiative aligns with President Bola Tinubu’s directive aimed at fortifying the national distribution grid. The directive seeks to ensure that all power generation facilities are adequately supplied with gas to enable a significant expansion of the existing energy infrastructure.

The regulatory authority, however, issued a stern caution to gas offtakers, mandating the uninterrupted supply of gas to generation companies. The statement underscored that any form of sabotage would not be condoned, warning that defaulters risk having their licenses revoked.

This decisive measure underscores the administration’s commitment to addressing Nigeria’s energy crisis and mitigating the impacts of grid instability on citizens and businesses alike.

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