Nigeria's Power Plants Face Collapse Amid Debt Crisis

Electricity generation companies in Nigeria are at risk of collapse due to mounting unpaid debts and gas supply cuts. Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, stated that the worsening liquidity crisis in the Nigerian Electricity Supply Industry has left many generation companies struggling to operate.

The Federal Government's plan to raise N729 billion through a second bond issuance under the Presidential Power Sector Debt Reduction Programme aims to address part of the N4 trillion owed to these companies. However, Ogaji cautioned that the bond alone will not resolve the crisis, as new liabilities continue to accumulate monthly.

She highlighted that debts have exceeded N3 trillion, leading to gas suppliers cutting off fuel to several generation companies, including Ibom Power, which has not generated electricity since 2025. Ogaji warned that unless the liquidity crisis is resolved, more power plants may cease operations, further destabilizing Nigeria's electricity supply.