N6.8tn Debt Pushes Nigeria Toward Worse Electricity Shortage

(AFRICAN EXAMINER) – Nigerians may experience even worse power outages as gas suppliers have threatened to stop supplying gas to electricity generation companies over a debt of about N3.3 trillion.

This was disclosed by Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, during an interview on Fresh FM.

Ogaji explained that the persistent power outages across the country are largely due to the huge debt owed to gas suppliers, who provide fuel for thermal power plants.

According to her, Nigeria currently relies mostly on gas-powered plants, which produced only 3,334 megawatts of electricity for the national grid as of Wednesday. However, gas shortages have made it difficult for power plants to generate enough electricity.

She revealed that the Federal Government’s total debt to generation companies (GenCos) had risen to about N6.8 trillion as of February 2026.

Ogaji explained that the debt has been building up for years.

She said the debt profile rose to N4 trillion between 2015 and December 2024, while in 2025 alone there was a monthly shortfall of about N200 billion, which added N2.4 trillion to the total debt.

According to her, the debt reached N6.6 trillion in January 2026 and increased further to N6.8 trillion in February 2026.

She stressed that the unpaid debt is the main reason for the worsening electricity situation in the country.

“Gas is not available because suppliers have told us that if we want gas, we must first pay money to get gas into the pipelines. We owe them a lot of money,” she said.

Meanwhile, the Minister of Power, Adebayo Adelabu, said the government is working to resolve the problem.

Speaking through his spokesperson, Bolaji Tunji, Adelabu said the matter is being handled together with the Minister of State for Petroleum (Gas), Ekperikpe Ekpo.

“It is being handled jointly with the Minister of State for Petroleum (Gas),” Tunji said.

However, many Nigerians are still waiting to see improvements in electricity supply.

Since December 2025, many parts of the country have been experiencing frequent power outages.

The situation has become even more difficult for households and businesses due to the sharp increase in the cost of fuel and diesel, which are now selling for over N1,100 and N1,600 per litre, respectively.

The increase followed a rise in crude oil prices after Dangote Refinery raised its gantry price amid tensions involving the United States, Israel, and Iran.

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