Nigeria’s electricity supply faces a potential further decline as gas suppliers are considering suspending supply to thermal power plants due to mounting debts owed by power generation companies.

The National Grid Nigeria, the operator of the national grid, revealed this development in a statement posted on its official X account on Thursday.

The disclosure warned that the situation could lead to a significant reduction in electricity generation nationwide.

Gas producers have voiced serious concerns regarding the unpaid bills accumulated by power generation companies, commonly referred to as GenCos.

They have indicated that persistent non-payment could compel them to halt gas supply 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 highlighted that thermal power stations rely heavily on gas for electricity production and provide a major portion of the power transmitted through the national grid.

Any disruption in gas supply would directly impact electricity output and exacerbate 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 emphasised that resolving the ongoing dispute between gas suppliers and generation companies remains essential to ensuring stable electricity supply across the nation.