Power plants face shutdown as gas supply cuts worsen
Electricity generation companies in Nigeria are warning of imminent collapse due to mounting unpaid debts and persistent gas supply cuts. Joy Ogaji, CEO of the Association of Power Generation Companies, highlighted that the country’s power plants are struggling to operate as gas suppliers cut off fuel to indebted companies. The Federal Government has initiated a bond programme to address legacy debts, but industry leaders argue this will not solve ongoing financial challenges. The situation is further complicated by inadequate subsidy provisions and accumulating fresh liabilities.
TLDR
- Joy Ogaji warned that unpaid debts and gas supply cuts are forcing many power plants to shut down.
- The Federal Government is issuing a N729bn bond under the Presidential Power Sector Debt Reduction Programme to settle part of the N4tn owed to generation companies.
- Ogaji said the bond only covers legacy debts up to December 2024, while new debts continue to accumulate.
- Some power plants, like Ibom Power, have not generated electricity since 2025 due to debts and gas supply cuts.
- The government claims to have paid N501bn to settle part of the debts and restore investor confidence, but industry leaders insist on more sustainable reforms.
