Nigeria’s ambition of using its vast natural gas reserves to power economic growth is under increasing threat as ageing and underperforming gas-fired power plants continue to drag electricity generation, with many facilities operating well below capacity despite decades of investment, a new report has warned.
The report, released by the Natural Resource Governance Institute and titled “Nigeria’s Gas-to-Power Ambitions: Limits, Opportunities and Alternatives,” obtained by our correspondent on Friday, argued that while natural gas has historically driven the expansion of Nigeria’s electricity supply, structural weaknesses across the power value chain have significantly diminished its ability to meet the country’s rapidly rising energy demand.
According to the report, most of Nigeria’s gas-fired power stations are now approaching or have exceeded half of their designed operational lifespan, while chronic underinvestment in maintenance has left many facilities in deteriorating condition.
The institute noted that although similar gas plants in other countries often operate for decades beyond their original lifespan through extensive refurbishment and overhauls, Nigeria’s electricity generation companies lack the financial capacity to undertake such expensive rehabilitation programmes.
