Nigeria’s federal government says it is moving to address persistent gas shortages undermining electricity generation, as power supply across the country continues to fluctuate.
The Minister of Power, Adebayo Adelabu, disclosed this in Abuja, noting that the government has begun implementing targeted interventions to stabilise gas supply to thermal power plants.
For years, Nigerians have endured erratic electricity, driven largely by insufficient gas supply to power plants, which generate the majority of the country’s electricity.
Industry data shows that as much as 68% of power plants have been unable to operate optimally due to gas shortages and payment disputes across the value chain, leading to frequent drops in generation levels.
What they are saying
Adelabu said the government’s reforms are focused on improving coordination between the gas and power sectors, which he described as critical to unlocking generation capacity and reducing grid instability. He also linked ongoing economic challenges in the sector to broader structural reforms being pursued by the administration of Bola Tinubu.
He added that recent policy actions are expected to gradually improve electricity supply for households and businesses, while calling for public patience as reforms take effect.
- “Concrete measures are being implemented to ensure more reliable and sustainable electricity for homes, businesses, and industries. The reforms initiated by President Tinubu are beginning to take root, and Nigerians will soon witness the full benefits,” Adelabu said.
More insights
The challenges in Nigeria’s power sector are further compounded by a mounting debt crisis. Power generation companies (GenCos) are currently weighed down by an estimated N6.8 trillion debt, which has forced several operators to shut down.
The debt, which has accumulated since 2015 and continues to rise by about N200 billion monthly, has severely limited GenCos’ ability to maintain infrastructure, procure gas, and meet operational costs.
Industry figures indicate that about 60% of payments owed to GenCos remain unpaid by gas suppliers and transporters, worsening liquidity across the energy value chain.
With gas-fired plants responsible for nearly 70% of Nigeria’s electricity generation, the reluctance of gas suppliers to continue deliveries without payment guarantees is intensifying supply disruptions nationwide.
What you should know
The federal government has been exploring financial instruments to address legacy debts in the power sector, including a proposed multi-trillion naira bond programme aimed at settling arrears owed to GenCos and gas suppliers.
The planned intervention, estimated at up to N4 trillion, is intended to restore liquidity, though it has raised concerns about increasing public debt through a debt-restructuring approach.
Meanwhile, power generation companies have pushed back on claims around the size and finality of verified debts, arguing that some reported figures do not accurately reflect outstanding obligations.
Nigeria has an installed electricity capacity exceeding 13,000 megawatts, but actual generation remains far below demand, highlighting the urgency of resolving gas supply and financial bottlenecks in the sector.
