Nigeria could be heading toward a deeper electricity crisis as gas suppliers warn they may halt supply to power generation companies over massive unpaid debts, raising concerns about an imminent nationwide blackout.
The alarm was raised by the Chief Executive Officer of the Association of Power Generation Companies (GenCos), Dr. Joy Ogaji, who revealed that gas producers are becoming increasingly reluctant to continue supplying fuel without receiving payment for outstanding obligations.
Speaking during an interview on Fresh FM, Ogaji explained that the persistent power outages experienced across the country are largely tied to financial problems within Nigeria’s electricity supply chain. According to her, the mounting debts owed to gas suppliers have severely disrupted the ability of thermal power plants to operate efficiently.
Nigeria’s power generation system relies heavily on gas-fired plants, which produce the majority of electricity distributed through the national grid. When gas supply becomes unstable or insufficient, power generation drops significantly, directly affecting electricity availability for homes and businesses.
Ogaji disclosed that the national grid managed to generate only about 3,334 megawatts of electricity as of Wednesday, a figure far below the country’s growing demand. She attributed the limited output mainly to the shortage of gas needed to run the plants.
She noted that gas suppliers have clearly warned that future deliveries may depend on immediate financial commitments.
According to her, suppliers have indicated that gas will only be made available if payments are made upfront to settle part of the debts owed to them.
Beyond the immediate challenge of gas supply, Ogaji also highlighted the growing financial burden facing power generation companies. She said the Federal Government’s debt to GenCos has continued to rise sharply, reaching approximately ₦6.8 trillion as of February 2026.
She explained that the debt had accumulated over several years, largely due to persistent payment shortfalls in the electricity market.
Ogaji revealed that between 2015 and December 2024, the outstanding debt had already climbed to about ₦4 trillion. However, the situation worsened in 2025 when the sector began experiencing an estimated monthly payment deficit of around ₦200 billion.
When calculated across the 12 months of 2025, the shortfall added an additional ₦2.4 trillion to the existing debt, pushing the total to about ₦6.4 trillion by the end of the year.
The debt continued to grow in 2026, rising to roughly ₦6.6 trillion in January and reaching ₦6.8 trillion by February.
Ogaji emphasized that the financial crisis is the main reason for the worsening electricity supply across the country, stressing that without addressing the debt problem, power outages are likely to persist.
Reacting to the concerns, the Minister of Power, Adebayo Adelabu, assured Nigerians that the Federal Government is already taking steps to resolve the issue.
In a brief response delivered through his spokesperson, Bolaji Tunji, the minister said efforts are underway in collaboration with the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, to find a solution to the gas supply challenge.
Nigeria has struggled with persistent electricity shortages since late 2025, leaving many households and businesses grappling with unreliable power supply. The situation has forced millions of Nigerians to depend heavily on petrol and diesel generators as alternative sources of electricity.
However, running generators has become increasingly expensive due to the rising cost of fuel.
Market surveys show that petrol currently sells for more than ₦1,100 per litre in many parts of the country, while diesel prices have surged to about ₦1,600 per litre.
Analysts say the spike in fuel prices is partly linked to global oil market volatility, which has been influenced by escalating geopolitical tensions involving the United States, Israel, and Iran.
With the power sector facing mounting financial pressure and gas suppliers threatening to suspend deliveries, industry experts warn that Nigeria could experience even more severe electricity shortages unless urgent measures are taken to address the growing debt crisis in the energy sector.
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