Nigeria is facing a potential nationwide blackout as gas suppliers halt deliveries to thermal power plants over a staggering N3.3 trillion debt owed by generation companies. This move has sparked fears of deeper power outages, worsening the country’s electricity crisis.

Dr. Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies (APGC), warned that the situation could lead to a total grid collapse if not addressed urgently. “Gas suppliers have already started reducing supply. There are critical maintenance works on our machines, spares to purchase, and other creditors who are no longer willing to wait for payments,” she stated.

The debt crisis is attributed to systemic failures, including tariff shortfalls, foreign exchange hurdles, and chronic underpayments by the Nigerian Bulk Electricity Trading Company (NBET) to generation companies. Gas suppliers, who account for 60% of GenCos’ revenues, have begun cutting supplies, leaving plants operating at critically low levels.