Nigeria could experience worsening electricity outages in the coming weeks as gas suppliers have threatened to halt gas supply to thermal power plants over an outstanding debt estimated at ₦3.3 trillion.
The warning was disclosed by the Chief Executive Officer of the Association of Power Generation Companies (APGC), Joy Ogaji, who said the growing financial crisis within the electricity value chain is pushing the sector toward a major operational breakdown.
According to Ogaji, Nigeria’s power generation companies are owed about ₦6.8 trillion for electricity supplied to the national grid since the sector was privatized in 2013. A large portion of this debt is tied to gas-fired thermal plants, which account for the majority of electricity generation in the country.
Industry estimates show that around ₦3.3 trillion of the total debt is owed directly to gas suppliers, whose fuel powers most of Nigeria’s electricity generation. The suppliers have reportedly informed power producers that gas will only be supplied if payments are made or guarantees are provided, raising fears of deeper power shortages nationwide.
Recent data from the Nigerian Independent System Operator indicates that electricity generation has already fallen below 4,000 megawatts, far below the country’s demand. The shortage is largely linked to insufficient gas supply to thermal power plants, forcing grid operators to implement load shedding across the country.
Thermal plants require about 1,629 million standard cubic feet of gas per day to operate efficiently, but actual supply has reportedly dropped to less than 43 percent of the required volume, forcing several power plants to scale down or shut operations.
Industry stakeholders warn that unless the outstanding debts are cleared and liquidity improves in the power sector, Nigeria could face prolonged nationwide blackouts, worsening the already fragile electricity situation affecting households and businesses.
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