Nigeria’s electricity generation may experience a further decline as gas suppliers are weighing the option of suspending gas deliveries to thermal power plants over rising debts owed by power generation companies.
This development was disclosed by National Grid Nigeria in a statement shared on its official page on X on Thursday.
According to the organisation, the situation could trigger a sharp drop in electricity production across the country if it is not urgently addressed.
Gas producers have reportedly expressed deep concerns over the outstanding payments owed by power generation companies, widely known as GenCos, warning that the continued accumulation of debt may force them to stop supplying gas to thermal power stations.
“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 grid operator further explained that thermal power plants depend largely on gas to generate electricity and contribute a significant share of the energy transmitted through the national grid.
A disruption in gas supply, it noted, would immediately reduce power output and worsen the country’s already fragile electricity system.
“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 addressing the dispute between gas suppliers and generation companies is crucial to maintaining stable electricity supply across Nigeria.
