Power Crisis Deepens as Debt Forces Shutdown of 16 Nigerian Power Plants

|By Babatunji Wusu

Nigeria’s worsening electricity crisis has taken a new turn as power generation companies (GenCos) shut down operations under the weight of a staggering N6.8 trillion debt burden.

According to a report by Bloomberg, at least 16 out of Nigeria’s 33 power plants were not supplying electricity as of Tuesday. The data, sourced from the Nigeria Independent System Operator (NISO), highlights the growing instability in the nation’s power sector.

Industry stakeholders say the affected plants are struggling to maintain equipment, secure gas supplies, and meet basic operational costs due to severe liquidity constraints.

The Chief Executive Officer of the Association of Power Generation Companies (APGC), Joy Ogaji, warned that the financial strain on GenCos reflects a broader crisis across the Nigerian Electricity Supply Industry.

Ogaji stressed that without urgent financial intervention, the sector may no longer be able to deliver reliable electricity to Nigerians.

“We cannot maintain the machines,” she said, noting that inadequate funding has made it impossible to service critical infrastructure, thereby worsening outages nationwide.

Describing the situation as more than just an industry problem, Ogaji emphasized its impact on the wider economy.

“Money for hand, light for house, gas for pipe. This is more than an industry issue. It is an economic imperative,” she said.

She further warned that stable electricity remains essential for industrialisation, job creation, and national development, urging authorities to act swiftly to prevent a total collapse of the sector.