Nigeria’s federal government has said it is taking steps to tackle persistent gas shortages disrupting electricity generation, as power supply across the country remains unstable.
Minister of Power, Adebayo Adelabu, made this disclosure in Abuja.
Adelabu said that the government targeted interventions are already underway to improve gas supply to thermal power plants.
For years, unreliable electricity in Nigeria has been largely driven by inadequate gas supply to power plants, which produce most of the nation’s electricity.
Industry data indicates that up to 68 per cent of power plants have been unable to operate at optimal capacity due to gas shortages and payment disputes across the value chain, resulting in frequent declines in generation levels.
Adelabu said the government’s reforms are aimed at strengthening coordination between the gas and power sectors, describing it as key to unlocking generation capacity and reducing grid instability.
He also tied the sector’s ongoing economic challenges to broader structural reforms being pursued by the administration of Bola Tinubu.
“Concrete measures are being implemented to ensure more reliable and sustainable electricity for homes, businesses, and industries. The reforms initiated by President Tinubu are beginning to take root, and Nigerians will soon witness the full benefits,” Adelabu said.
Nigeria’s power sector challenges are being worsened by a growing debt crisis, with generation companies burdened by an estimated N6.8 trillion debt, forcing several operators to shut down.
Accumulating since 2015 and rising by about N200 billion each month, the debt has significantly constrained GenCos’ ability to maintain infrastructure, procure gas, and meet operational costs.
The federal government is exploring financial instruments to tackle legacy debts in the power sector, including a proposed multi-trillion naira bond programme to clear arrears owed to GenCos and gas suppliers.
The planned intervention, estimated at up to N4 trillion, is aimed at restoring liquidity, though it has sparked concerns about a potential rise in public debt through a debt-restructuring approach.
Nigeria has an installed electricity capacity of over 13,000 megawatts, but actual generation remains significantly below demand, underscoring the urgency of resolving gas supply constraints and financial bottlenecks in the sector.
