Nigeria’s electricity supply may decline further as gas suppliers consider suspending supply to thermal power plants over rising debts owed by power generation companies.
The operator of the national grid, National Grid Nigeria, disclosed this in a statement posted on its official X (formerly Twitter) account on Thursday, warning that the development could significantly reduce electricity generation across the country.
According to the grid operator, gas producers have expressed concern over unpaid bills accumulated by power generation companies, popularly known as GenCos, and have warned that continued non-payment may force them to stop supplying gas to thermal plants.
“Gas suppliers have raised serious concerns about the growing debt owed by generation companies,” the statement said. “If the situation persists, they may have no option but to suspend gas supply to thermal power plants.”
The organisation noted that thermal power stations depend largely on gas to produce electricity and contribute a major share of the power transmitted to the national grid.
It warned that any disruption in gas supply would directly affect electricity output and could worsen the country’s already unstable power situation.
“Thermal plants account for a significant portion of the electricity fed into the national grid. Any interruption in gas supply will inevitably lead to a drop in generation capacity and further strain the system,” the statement added.
National Grid Nigeria stressed that resolving the dispute between gas suppliers and generation companies is critical to maintaining stable electricity supply nationwide.
