Nigeria's Energy Crisis: Gas Shortages Leave Power Plants Struggling

Nigeria's gas-fired power plants receive less than half the fuel needed, impacting electricity supply. Due to government subsidies, sector debt has reached 6 trillion naira, reducing gas deliveries to power plants. National generation fell to 4,300 MW necessitating load shedding and affecting power distributors.

Nigeria is facing an escalating energy crisis as gas-fired power plants receive less than half of their required fuel, severely impacting electricity supply throughout Africa's most populous nation.

The deficit stems from increasing sector debt, largely attributed to government subsidies, which has surged to 6 trillion naira ($4.4 billion). Consequently, gas deliveries to these power plants have plummeted, with the country's generation capacity dropping to approximately 4,300 megawatts, forcing the grid operator to implement load shedding to maintain stability.

The Nigerian Independent System Operator (NISO) reports that thermal stations need around 1,630 million standard cubic feet (mmscf) of gas daily, but current supply is a mere 43% of this requirement. The government has started measures to refinance the debt, yet operators claim it's inadequate, as dwindling supply and mounting debts have sparked wider economic concerns.