Nigerian Power Sector Faces Crisis with Debt and Shutdown Threats in 2025

In 2025, the Nigerian power sector witnessed a leadership crisis within the Nigerian Electricity Regulatory Commission (NERC), with four individuals emerging as chairmen. Debt issues plagued the sector, with power plant owners threatening shutdowns due to a total debt of N4 trillion owed to the federal government.

The standoff between electricity distribution companies (DISCOs) and the government over debts led to threats of shutdowns. Despite agreements to settle debts, challenges persisted, leading to disruptions in electricity supply and a drop in power generation.

The sector also saw conflicts arising from the 2023 Electricity Act allowing state regulation of the electricity sector.