March 24, (THEWILL) — Nigeria’s federal government has stepped up efforts to address persistent gas shortages that continue to undermine electricity generation, as power supply across the country remains unstable.
The Minister of Power, Adebayo Adelabu, disclosed this in Abuja, stating that targeted interventions are already underway to stabilise gas supply to thermal power plants. These plants account for the bulk of Nigeria’s electricity generation, making consistent gas availability critical to national power output.
For years, Nigerians have grappled with erratic electricity supply, a situation largely attributed to inadequate gas supply to generation companies (GenCos). Despite Nigeria’s vast natural gas reserves, infrastructural gaps, pricing issues, and contractual disputes have prevented efficient delivery to power producers.
Industry data indicates that as much as 68% of power plants have been unable to operate at optimal capacity due to gas shortages and persistent payment disputes across the electricity value chain. This has resulted in frequent drops in generation levels, contributing to nationwide blackouts and unreliable supply.
The growing financial burden within the sector has further exacerbated the crisis. Power generation companies are currently weighed down by an estimated ₦6.8 trillion debt, a situation that has forced some operators to shut down operations entirely. The debt accumulated since 2015, and increasing by roughly ₦200 billion every month, has significantly constrained GenCos’ ability to maintain infrastructure, procure gas, and meet operational costs.
Experts warn that without urgent and sustained reforms, the cycle of poor generation, weak distribution, and inadequate revenue recovery will continue to cripple the sector. While the government’s renewed focus on gas supply is seen as a step in the right direction, stakeholders stress that resolving liquidity issues and improving market transparency are equally critical.
Ultimately, stabilising Nigeria’s power sector will require a coordinated approach that addresses both the physical constraints, such as gas supply and the financial inefficiencies that have long plagued the industry.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
