Professional Evaluation of Gas-to-Power Project Implementation Challenges in the North Central Zone

📖 ABSTRACT/OVERVIEW

Gas-to-power projects represent the primary vehicle for converting Nigeria's gas resources into electricity, yet their implementation in the North Central zone is constrained by a combination of technical, commercial, and institutional challenges. This study conducts a professional evaluation of the implementation challenges facing gas-to-power projects in the North Central geopolitical zone, examining case studies from planned and stalled projects in Kogi, Nasarawa, and Benue states. The research employs a project implementation barriers analysis methodology, drawing on project documentation review, stakeholder interviews with project developers, lenders, gas suppliers, and state government officials, and comparative analysis with successfully implemented gas-to-power projects in southern Nigeria. Implementation dimensions examined include gas supply security and pricing, power purchase agreement (PPA) negotiation challenges, grid connection approval timelines, land acquisition difficulties, environmental permitting, and project financing structure challenges. Findings indicate that PPA negotiation delays with the Nigerian Bulk Electricity Trading (NBET) company and the inadequacy of NBET credit ratings as a counterparty for commercial lenders constitute the most frequently cited implementation barriers, accounting for an average project delay of 24 months across the studied projects. Gas supply pricing uncertainty and host community engagement challenges are ranked as secondary barriers. Recommendations include NBET credit enhancement through federal government guarantees, standardised PPA terms for North Central gas-to-power projects, and development of a state government-led gas-to-power project facilitation unit. Keywords: gas-to-power, North Central Nigeria, project implementation, PPA, power sector.

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Departments# Gas Engineering