Erratic Gas Pricing Threatens Stable Power Generation, Says Suswam

Former Chairman of the Senate Committee on Power, Senator Gabriel Suswam, has warned that Nigeria’s unstable gas pricing framework remains one of the biggest obstacles to achieving stable electricity generation across the country.

Speaking at the 20th anniversary celebration of the Nigerian Electricity Regulatory Commission (NERC) in Abuja, Suswam said distortions in gas pricing and supply continue to frustrate generation targets and discourage investments in the power sector.

“The same gas pipeline that takes power to plants in Ogun also extends to Ghana; yet Ghana enjoys more stable pricing because its citizens are willing to pay the right price.

“We must ask ourselves whether Nigeria is paying the right price for gas. Our approach remains uncoordinated and lacks proper alignment between the gas and power sectors,” he said.

Suswam described the disconnect between gas producers and electricity generators as a major policy bottleneck that undermines efficiency and market confidence.

He called for greater inter-ministerial coordination between the Ministries of Power and Petroleum Resources to ensure coherent energy policy formulation and implementation.

“We cannot sustain power generation when the fuel that drives it, gas, is treated in isolation. There must be synergy between the Ministries of Power and Petroleum Resources,” Suswam said.

The former lawmaker also noted that broader macroeconomic factors—such as exchange rate volatility, foreign exchange scarcity, and subsidy management, continue to shape the cost of energy production.

He said, “Until we align fiscal, monetary, and energy policies, we will keep repeating the same cycle of inefficiency,”.

In his remarks, former NERC Chairman, Dr Sam Amadi, echoed similar concerns, stressing that weak institutional coordination remains a major impediment to Nigeria’s energy sector progress.

“Let me commend NERC. Arguably, it is the most educated and competent regulator in the country. But without alignment across agencies and ministries, regulation alone cannot fix the energy market,” Amadi said.

He praised NERC’s capacity development efforts, noting that “from Owan till now, one thing is clear, NERC is exporting human capital, and that is a success.”

Also speaking, the pioneer NERC Chairman, Dr Ransome Owan, lauded the commission for its commitment to transparency, but urged greater openness from utilities operating within the electricity value chain.

“I’m proud of NERC not only for their achievements but for their transparency. There’s a lot of information on their website. But for utilities, there’s opacity. This asymmetry needs to be dissolved,” Owan said.