Nigeria’s electricity sector is on the brink of crisis as gas suppliers cut deliveries to power plants over an outstanding ₦5.6 trillion debt owed to Generation Companies (GenCos). The warning came from Dr. Joy Ogaji, CEO of the Association of Power Generation Companies, who cautioned that without urgent government action, the country faces widespread blackouts.
From January to August 2025 alone, an additional ₦1.6tn was added to the sector’s arrears, raising GenCos’ unpaid invoices to ₦5.6tn. GenCos’ monthly bills average ₦270bn, but only ₦70bn is paid, leaving ₦200bn unpaid each month. Despite President Tinubu’s July promise of a ₦4tn bond programme to settle debts, operators say no progress has been made.
With 60% of GenCos’ revenues committed to gas producers, the debt has triggered supply cuts that threaten the national grid’s stability. Recent grid collapses have already left much of the country in darkness, with partial recovery to just 4,000 MW. Industry leaders warn that unless liquidity gaps are urgently bridged, Nigeria risks deeper electricity sector collapse, undermining homes, businesses, and economic growth.
