LAGOS, NIGERIA — Nigeria’s power sector has plunged deeper into crisis as a N6.8 trillion debt owed to electricity generation companies (GenCos) has forced gas suppliers to cut supply to thermal plants, triggering nationwide blackouts that are crippling businesses and sparking protests across the country.
The Chief Executive Officer of the Association of Power Generation Companies, Dr. Joy Ogaji, revealed that gas suppliers have threatened to halt supply over an accumulated debt of approximately N3.3 trillion, representing the portion owed to them from the total N6.8 trillion government debt.
“Gas is not available because the gas suppliers have told us that if we need gas, we need to put money on the ground to get gas in the pipe. We owe them a lot of money,” Ogaji stated, adding that the debt is “120 per cent correct” as the reason Nigerians are in darkness.
Data from the Nigerian Independent System Operator (NISO) shows that thermal plants require an estimated 1,629.75 million standard cubic feet of gas daily for optimal operation, but current supply stands at just 692 mmscf—less than 43 per cent of requirements.
As of Wednesday, generation had plummeted to only 3,334 megawatts, forcing distribution companies to ration the limited power available.
Protests Erupt as Hardship Deepens
Frustrated residents of Fadeyi, Mushin, Igando, and other Lagos communities have taken to the streets, protesting persistent blackouts amid scorching heat and skyrocketing petrol prices exceeding N1,300 per litre.
“It’s been three weeks now, and it’s like living in a different era. We can’t charge our phones, the food in the fridge is getting bad, and the children are getting restless,” lamented Mrs. Oyinlola, a mother of three.
Protesters carried placards reading “No more estimated billing,” “No light, no life, no nation,” and “You’re destroying so many businesses”.
In Owerri, residents expressed dismay that even the newly commissioned Orashi 15MVA Injection Substation has failed to improve supply, with areas like Ikenegbu layout experiencing worse blackouts than before the project was inaugurated.
Mounting Debt Across Value Chain
Ogaji provided a detailed breakdown of the debt accumulation: from N4 trillion between 2015 and December 2024, it grew by N200 billion monthly throughout 2025, reaching N6.4 trillion by year-end. January 2026 added another N200 billion, with February pushing the figure to N6.8 trillion.
“NBET is set up to buy power from GenCos and sell to DisCos. The aim is that, as they buy power, they will pay in full, but since 2013 till today, they’ve never paid in full,” Ogaji explained.
The crisis has been worsened by the naira’s depreciation, as GenCos took dollar-denominated loans during privatisation in 2013 when the exchange rate was N155 to one dollar.
Meanwhile, the Federal Government has announced the creation of the Grid Asset Management Company (GAMCO) as a “quick-fix solution” to recover about 1,600 megawatts of stranded electricity, though experts warn that creating another institution may not solve deep structural problems
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