Nigeria’s electricity crisis has deepened as power generation companies (GenCos) shut down or scale back operations due to a worsening gas supply and debt crisis, raising fears of prolonged nationwide blackout.
According to industry reports, gas suppliers are increasingly refusing to supply fuel to thermal power plants over an estimated ₦3.3 trillion debt owed within the power value chain. This has severely affected electricity generation, since gas-fired plants account for about 70% of Nigeria’s total power output.
The situation has forced several generation companies to either reduce output or completely shut down some plants, further weakening the already fragile national grid. Power supply across the country has dropped significantly, with widespread load shedding affecting homes, businesses, and industries.
Energy sector operators warn that the crisis stems from a deeper liquidity problem in the electricity market, where the Nigerian Bulk Electricity Trading (NBET) system has consistently failed to fully settle invoices from GenCos. This has created a chain reaction of unpaid debts stretching from government agencies to power producers and gas suppliers.
Industry stakeholders say the debt burden has now reached unsustainable levels, leaving gas suppliers unable to continue financing production without payment guarantees. As a result, gas flow to power stations has dropped sharply, forcing some plants offline and reducing national generation capacity.
Reports also indicate that Nigeria’s grid output has fallen below required levels, worsening already frequent blackouts and increasing reliance on fuel-powered generators across the country.
Analysts warn that without urgent intervention—such as debt restructuring, improved revenue collection, and reform of the electricity market—the situation could escalate further, potentially triggering more widespread and prolonged power outages.
The Federal Government is yet to announce new emergency measures, but stakeholders continue to call for immediate action to stabilise gas supply and prevent a total collapse of electricity generation.
For now, Nigerians are likely to continue experiencing erratic power supply as the sector struggles with its most severe liquidity crisis in years.
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