Nigeria’s Power Crisis Deepens as Gas Deliveries to Plants Fall

Electricity shortages across Nigeria could worsen as gas suppliers reduce deliveries to thermal power plants, further limiting generation on the national grid.

Data from the Nigerian Independent System Operator shows that thermal power plants require about 1,629.75 million standard cubic feet of gas per day to operate at optimal capacity. As of February 23, 2026, actual supply stood at roughly 692 million standard cubic feet per day, less than 43 percent of the required volume.

The reduced gas supply comes as blackouts continue in many parts of the country, affecting households and businesses and forcing electricity distribution companies to increase load shedding.

The Chief Executive Officer of the Association of Power Generation Companies, Dr. Joy Ogaji, said the situation is tied to mounting debts in Nigeria’s electricity market. According to her, the Nigerian Bulk Electricity Trading Plc (NBET), which purchases electricity from generation companies and sells it to distribution companies, has failed to fully pay for electricity supplied since the sector’s privatisation in 2013.

Ogaji said the government currently owes generation companies about ₦6.8 trillion, with thermal plants accounting for roughly 70 percent of the debt. Industry estimates suggest about ₦3.3 trillion of that amount is owed to gas suppliers whose fuel powers most of Nigeria’s electricity generation.

She said gas producers have increasingly insisted on payment before supplying fuel to power plants, worsening the shortage. The financial strain has also left generation companies struggling to repay loans obtained during the 2013 privatisation of the power sector, many of which were taken in dollars when the naira traded at about ₦155 to the dollar.

Electricity output remains far below installed capacity. A recent operational report by the Nigerian Electricity Regulatory Commission showed that only 32 percent of the country’s 13,625 megawatts installed generation capacity was dispatched in February 2026. The report indicated that an average of about 4,384 megawatts was available for dispatch during the month, with around 4,102 megawatts utilised.

Hydropower stations including Kainji Dam and Jebba Hydroelectric Power Station were among the top energy producers, helping to sustain supply despite the dry season.

Distribution companies say the limited generation has forced them to ration electricity. Grid allocation figures indicate that Abuja’s distribution company receives about 539 megawatts from the national grid, while Ikeja receives about 533 megawatts and Eko receives around 455 megawatts. Ibadan receives roughly 336 megawatts, Benin about 227 megawatts, Enugu around 218 megawatts and Jos about 159 megawatts. Kaduna receives approximately 178 megawatts, Kano about 190 megawatts and Port Harcourt around 196 megawatts.

In several parts of Lagos, residents have protested prolonged power cuts amid rising temperatures and higher petrol prices that make generator use more expensive. Demonstrations were reported in areas including Fadeyi, Mushin, Igando, Ajegunle and Badagry, where residents say unreliable electricity has disrupted daily life and damaged small businesses.

Some residents also criticised electricity distributors for issuing estimated bills despite the poor supply and called for wider distribution of prepaid meters. In communities such as Akesan and Obadore, residents said electricity is sometimes available for less than two hours per week and threatened to stage a large protest at the headquarters of Ikeja Electric.

Power distributors say the situation is linked to gas supply constraints affecting electricity generation. In a notice to customers, Ikeja Electric said the gas shortage had created a significant energy shortfall on the national grid, forcing increased load shedding across its network.

Eko Electricity Distribution Company also said it was working with other stakeholders in the sector to resolve the gas supply challenges and restore normal power generation levels.