Nigeria’s fragile electricity sector may be heading toward another major disruption as gas suppliers warn they could stop supplying fuel to thermal power plants over unpaid debts estimated at ₦3.3 trillion.
The warning comes amid growing financial strain across the country’s power value chain, raising fears that millions of Nigerians could face more blackouts if urgent action is not taken.
Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies (GenCos), raised the alarm while speaking about the deepening financial crisis in the industry. According to her, the massive debt owed to gas suppliers has reached a point where continued supply can no longer be guaranteed.
Thermal power plants, which generate the majority of Nigeria’s electricity, rely heavily on natural gas to operate. Without steady gas supply, these plants cannot function effectively, meaning electricity production could drop significantly.
Ogaji explained that the debt accumulated over time due to persistent payment shortfalls within the power sector. Distribution companies often struggle to recover enough revenue from consumers, while government subsidies meant to cushion the gap have not fully covered the financial obligations across the electricity chain.
As a result, power generation companies have been unable to meet their payment commitments to gas producers, pushing the industry closer to a potential supply shutdown.
Nigeria has long battled electricity challenges despite several reforms introduced since the sector was partially privatized in 2013. The reform aimed to improve efficiency and attract private investment, but financial liquidity problems have continued to plague the system.
Energy experts warn that if gas suppliers eventually suspend deliveries, power generation could drop sharply, worsening the country’s already unstable electricity supply. This would have serious consequences for businesses, households, and industries that rely on electricity for daily operations.
For many Nigerians, unreliable power already means higher living costs, as homes and businesses spend billions of naira annually on fuel for generators.
Industry stakeholders are therefore urging the federal government to urgently address the debt crisis and ensure that funds flow properly through the power value chain.
Without swift intervention, analysts say the situation could deepen Nigeria’s energy crisis and further slow economic growth in a country where reliable electricity remains one of the biggest obstacles to development.
The coming weeks may prove critical as the government, power producers, and gas suppliers seek a solution that can prevent another wave of nationwide power disruptions.