Nigeria’s gas-fired power plants are receiving less than half of the fuel they require, further straining electricity supply across Africa’s most populous country, the grid manager reported on Friday.
According to Reuters, the shortage stems from mounting sector debt linked to government subsidies, which operators say has reached 6 trillion naira ($4.4 billion) this month.
As a result, gas deliveries to power plants have dropped to below 50% of needed volumes.
National generation has declined to about 4,300 megawatts, forcing the grid operator to implement load shedding and reduce allocations to power distributors to maintain system stability.
Thermal power stations typically require around 1,630 million standard cubic feet (mmscf) of gas per day, but actual supply as of February 23 was only about 692 mmscf, roughly 43% of the required volume, according to the Nigerian Independent System Operator.
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“The shortfall has constrained national output and reduced the amount of power allocated to distribution companies,” NISO said in a statement.
It added that when total system generation drops sharply, load shedding must be implemented while distributing available energy according to regulated allocation percentages to maintain grid stability.
Last year, the government approved a phased plan to refinance 4 trillion naira in electricity sector debt to stabilize the struggling industry.
The debt, owed primarily to 27 power generation companies for unpaid invoices dating from 2015 to 2023, has discouraged investment and worsened already severe outages.
In January, the government issued the first tranche of a 501 billion naira bond aimed at restoring liquidity. However, operators say this measure is insufficient, noting that total sector debt has since climbed to 6 trillion naira.
The declining gas supply has also disrupted tariff reforms. Even the roughly 15% of wealthier consumers who recently faced higher tariffs based on their consumption and ability to pay are now experiencing erratic electricity, leading many to consider disconnecting from the grid.
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Image Credit: Peoples Gazette™ Limited
