Electricity Shortages Worsen Amid N3.3tr Debt to Gas Companies

Electricity Shortages Worsen Amid N3.3tr Debt to Gas Companies

The ongoing electricity crisis in Nigeria is set to worsen as gas suppliers have reportedly threatened to halt fuel supply to thermal power plants over an estimated N3.3 trillion debt owed by generation companies (GenCos), the Chief Executive Officer of the Association of Power Generation Companies (APGC), Joy Ogaji, has warned.

Speaking in an interview with Fresh FM, Ogaji said the debt stems from the inability of the Nigerian Bulk Electricity Trading (NBET) Plc to fully pay GenCos for power supplied since the sector’s privatisation.

She noted that the federal government currently owes generation companies approximately N6.8 trillion, with about 70 percent of the total debt tied to thermal power plants.

“This means around N4.76 trillion is owed to thermal power plants, and 70 percent of that; about N3.3 trillion is owed to gas suppliers,” Ogaji explained.

According to the APGC boss, NBET was established to purchase electricity from generation companies and sell it to distribution companies (DisCos), ensuring that GenCos are fully compensated. However, partial payments over the years have allowed the debt to balloon.

“From 2015 to December 2024, the debt profile rose to N4 trillion. In 2025 alone, shortfalls averaged N200 billion per month, adding N2.4 trillion to the total. As of February 2026, the debt has reached N6.8 trillion, and by the end of March, it could hit N7 trillion if the shortfall continues,” she said.

Ogaji highlighted that gas suppliers are the most affected because thermal plants, which generate about 70 percent of the nation’s electricity, rely on gas. Hydro plants, which account for the remaining 30 percent, use water and are not involved in this debt dispute.

“The gas suppliers have been very patient. They are the reason thermal plants are still generating power, but they’ve now demanded upfront payments. Without settlement, they have threatened to stop supplying gas, which would force thermal plants to shut down,” Ogaji warned.

The APGC chief also explained that unpaid debts have made it difficult for GenCos to repay bank loans obtained during the 2013 power sector privatisation, further deepening the crisis.

She concluded, “The reality is simple: the electricity shortages Nigerians are experiencing are directly linked to this mounting debt. Until it is addressed, our power supply will remain unstable.”