Nigeria may experience a worsening power outage as gas suppliers have threatened to halt supply to electricity generation companies over an outstanding debt of about N3.3 trillion.
The Chief Executive Officer of the Association of Power Generation Companies, Dr. Joy Ogaji, disclosed this in a recent interview on Fresh FM, attributing the persistent power outages across the country to the mounting debts owed to gas suppliers.
According to Ogaji, Nigeria’s heavy reliance on gas-powered thermal plants has made the situation more critical, especially as the country currently generates only about 3,334 megawatts of electricity to the national grid due to gas shortages.
She explained that the federal government’s total debt to power generation companies had risen to about N6.8 trillion as of the end of February 2026.
“Gas is not available because suppliers have told us that if we need gas, we must put money on the ground to get it into the pipeline. We owe them a lot of money,” Ogaji said.
She further broke down the debt profile, noting that from 2015 to December 2024, the debt accumulated to N4 trillion. According to her, a monthly shortfall of N200 billion was recorded throughout 2025, adding N2.4 trillion to the total by the end of the year.
“With that calculation, the debt rose to N6.4 trillion after December 2025. Since we are already in March 2026, it increased to N6.6 trillion in January and N6.8 trillion in February,” she said.
Ogaji stressed that the growing debt is largely responsible for the persistent electricity shortages being experienced nationwide.
“Yes, it is 120 percent correct to say that the debt is the reason why we are in darkness,” she added.
Reacting to the development, the Minister of Power, Adebayo Adelabu, said the government was working to address the issue. Through his spokesperson, Bolaji Tunji, the minister noted that the matter is being handled in collaboration 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 response.
Nigeria has been grappling with unstable electricity supply since December last year, a situation that has forced many households and businesses to rely heavily on alternative power sources.
The impact of the outages has been compounded by the rising cost of fuel and diesel, which now sell for over N1,100 and N1,600 per liter, respectively, following an increase in gantry prices by the Dangote Refinery amid rising global crude oil prices linked to escalating tensions involving Iran, the United States, and Israel.
