Nigeria’s electricity supply may deteriorate further as power generation companies warn that gas suppliers could halt supply due to mounting debts within the country’s power sector.
The alarm was raised by the Chief Executive Officer of the Association of Power Generation Companies (APGC), Joy Ogaji, who said gas suppliers have issued warnings that they may stop delivering gas to power plants unless outstanding payments are settled.
Speaking during an interview on Fresh FM, Ogaji said the persistent power outages experienced by Nigerians over the past several months are largely linked to the huge debt owed to gas suppliers.
According to her, Nigeria’s electricity generation capacity has been severely constrained due to limited gas availability, with thermal power plants—largely dependent on gas—struggling to operate at optimal capacity.
As of Wednesday, the national grid was receiving only about 3,334 megawatts of electricity, far below the country’s estimated demand.
Ogaji explained that the Federal Government’s debt to power generation companies has continued to grow, placing the entire electricity value chain under significant financial pressure.
“Gas is not available because the gas suppliers have told us that if we need gas, we need to put money on the ground to get gas in the pipe. We owe them a lot of money,” she said.
Providing a breakdown of the liabilities, she noted that the sector’s debt profile rose sharply over the years.
“From 2015 to December 2024, the debt profile grew to N4 trillion. In each month of 2025, there was a shortfall of N200 billion. If you multiply that by 12 months, it adds N2.4 trillion, bringing the total to about N6.4 trillion by the end of 2025.
“We are already in March 2026. The debt rose to N6.6 trillion in January and N6.8 trillion in February.”
She added that the worsening debt situation is directly responsible for the prolonged electricity shortages being experienced across the country.
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“Yes, it is 120 percent correct to say that the debt is the reason why we are in darkness,” Ogaji said.
Reacting to the development, the Minister of Power, Adebayo Adelabu, said the issue is currently being addressed by the Federal Government.
Adelabu, who is also reportedly preparing to contest the governorship election in Oyo State, spoke through his spokesperson, Bolaji Tunji.
Tunji said the matter is being handled jointly with the Minister of State for Petroleum (Gas), Ekperikpe Ekpo.
“It is being handled jointly with the Minister of State for Petroleum (Gas),” Tunji said in a brief statement.
However, despite assurances from the government, many Nigerians say there has been little improvement in electricity supply.
Energy analysts say the crisis highlights deeper structural problems within the Nigerian Electricity Supply Industry.
Power sector analyst Ayodele Oni said the growing debt burden across the electricity value chain is threatening the stability of the entire industry.
“When generation companies cannot pay gas suppliers, the supply chain breaks down. Gas producers will naturally prioritise customers that can pay. That is why we are seeing persistent generation shortages,” Oni explained.
Similarly, energy economist Muda Yusuf said Nigeria’s electricity market remains trapped in a liquidity crisis that requires urgent government intervention.
“The sector has been dealing with a long-standing liquidity problem. Tariffs are still not fully cost-reflective, while revenue collection challenges persist. Without addressing these structural issues, the crisis will continue,” Yusuf said.
The electricity shortage has forced many households and businesses to rely heavily on petrol and diesel generators to meet their energy needs.
However, the cost of running generators has increased sharply in recent weeks.
Industry sources say petrol prices have climbed above N1,100 per litre, while diesel now sells for more than N1,600 per litre following adjustments in the gantry price at the Dangote Refinery.
Analysts attribute the increase partly to rising global crude oil prices triggered by escalating tensions involving the United States, Israel and Iran.
With electricity supply remaining unstable since December last year, many Nigerians fear the situation could worsen unless urgent financial and structural reforms are implemented in the country’s power sector.