Nigeria's Aging Gas Plants Threaten Power Supply Stability

A report from the Natural Resource Governance Institute indicates that Nigeria's gas-fired power plants are significantly underperforming, with many operating below capacity. The report highlights that approximately half of these plants are approaching or have exceeded their design operational lifespan, which is typically 30 to 40 years.

Chronic underinvestment in maintenance has led to deteriorating conditions, making it difficult for the plants to meet the country's rising energy demand. The report notes that Nigeria's electricity generation capacity has declined since peaking around 2016, with the national grid rarely delivering 4,000 megawatts, a stark contrast to levels achieved a decade ago.

It identifies inadequate gas supply, poor maintenance, and weak commercial performance as major constraints. The report questions whether Nigeria should prioritize constructing new gas-fired power plants instead of restoring the performance of existing facilities, warning that the current gas-dominated electricity system fails to bridge the significant power supply deficit.