Gas Supply Halt Threatens Nigeria's Power Stability

Gas suppliers in Nigeria have ceased supplying thermal power plants due to an estimated N3.3 trillion debt owed by power generation companies, which threatens to deepen the country's electricity crisis. Dr. Joi Ogaji, Chief Executive Officer of the Association of Power Generation Companies, disclosed this during an interview, highlighting that the mounting debt across the power value chain is pushing the sector toward a major crisis.

Recent data indicates that power generation has dropped below 4,000 megawatts, primarily due to gas supply constraints. As of February 23, 2026, actual gas supply was only 692 million standard cubic feet per day, representing a 43% shortfall of the required volume.

The Nigerian Bulk Electricity Trade Plc (NBET) has not fully paid the electricity generation companies, which has led to the current situation. Ogaji noted that the debt profile has significantly increased since 2015, with projections indicating it could reach N7 trillion by March 2026 if the trend continues.