Yuletide: Grid Collapse Looms As Gas Shortfall Hits Power Stations

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Nigerians may face prolonged electricity outages this festive season as gas supply disruptions continue to cripple power generation nationwide. Generation companies have reportedly begun reducing output after gas suppliers curtailed deliveries, citing unpaid debts, while pipeline vandalism has further aggravated the situation.

On Tuesday, the Enugu Electricity Distribution Company (EEDC) informed customers across the South-East that low system frequency—caused by gas constraints affecting generation companies—was forcing the Transmission Company of Nigeria to implement load shedding. EEDC stated that this has reduced daily energy allocations to its subsidiary companies, including MainPower, TransPower, FirstPower, NewEra, and EastLand.

The utility company reassured customers that stakeholders across the electricity supply chain are working to resolve the issue, apologizing for the inconvenience caused. Similarly, the Port Harcourt Electricity Distribution Company reported ongoing load shedding across its franchise areas due to poor generation and energy allocation.

Joy Ogaji, CEO of the Association of Power Generation Companies, confirmed that gas producers had begun cutting supply in response to longstanding debts owed by the Federal Government. This mirrors a similar crisis in early 2024, when gas suppliers withheld feedstock from thermal power plants, leaving Nigerians in darkness for months. Although government interventions temporarily resolved the previous crisis, the issue of unpaid gas debts persisted.

On December 4, 2025, the Federal Government approved N185 billion to settle outstanding debts owed to natural gas suppliers, following the National Economic Council’s endorsement, chaired by Vice President Kashim Shettima. However, the rationale behind gas companies reducing supply despite the government’s payment plan remains unclear, as officials from the Ministry of Power have yet to comment.

Compounding the financial dispute, the Nigerian Independent System Operator (NISO) reported that a recent gas pipeline vandalism incident disrupted supply to multiple gas-fired power plants, sharply reducing available generation capacity on the national grid. NISO said the disruption forced thermal power stations to operate at lower output, highlighting the vulnerability of Nigeria’s power sector, where over 80% of grid-connected plants rely on natural gas.

To stabilize the system, NISO activated contingency measures, including increased dispatch from hydroelectric stations, generation re-dispatch, voltage control interventions, and other operational adjustments to balance electricity supply with demand. The operator also noted that the timing of the disruption is critical, as electricity demand typically rises during the festive season.

With gas supplies constrained and generation yet to recover, electricity distribution across the country remains under severe pressure, raising concerns about sustained outages if the government and industry stakeholders do not urgently resolve liquidity and security challenges in the gas-to-power chain.

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