Electricity supply across Nigeria has deteriorated further following the shutdown of several power generation plants by Generation Companies (GenCos), citing an unsustainable debt burden estimated at N6.8 trillion.
According to a report by Bloomberg, at least 16 out of the country’s 33 power plants were not generating electricity as of Tuesday. The data, sourced from the Nigeria Independent System Operator, highlights the scale of the disruption currently affecting the national grid.
The affected plants are reportedly struggling with mounting operational challenges, including the inability to maintain critical equipment, secure adequate gas supplies, and meet basic running costs.
Industry stakeholders say the crisis reflects deeper structural and financial issues within Nigeria’s electricity sector. The Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, warned that the worsening liquidity crunch threatens the survival of the generation sub-sector.
She noted that GenCos are increasingly unable to service and maintain infrastructure due to insufficient funding, stressing that the situation has gone beyond an industry concern to a national economic issue.
Ogaji emphasized that stable electricity supply is critical for industrial growth, employment generation, and overall economic development, urging urgent intervention to address the financial constraints.
The development comes amid earlier warnings by GenCos and gas suppliers, who had threatened to suspend operations over outstanding debts previously estimated at N3.3 trillion.
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