Power generation in Nigeria surged to 3,624.34 megawatts on Thursday following the restoration of the national grid by engineers from the Transmission Company of Nigeria (TCN). This development comes after a nationwide blackout caused by the grid’s 12th collapse this year.
The grid collapse occurred on Wednesday at approximately 1:36 pm, reducing power generation to zero. However, by 1 am on Thursday, electricity output rose to 2,412.89MW, eventually peaking at 3,624.34MW by 7 pm.
Gas Supply Crisis and Government Intervention
The restoration was made possible after the Federal Government intervened in a looming crisis involving gas suppliers and power generation companies (Gencos). Wholesale gas-producing companies had halted natural gas supply to Gencos over a debt of about N2.7tn, threatening to cripple the nation’s electricity supply.
The majority of Nigeria’s electricity—70%—is generated by gas-fired power plants. A halt in gas supply would have led to a significant reduction in electricity generation and prolonged blackouts nationwide.
Officials from the Federal Ministry of Power confirmed that the government acted swiftly to prevent the gas supply suspension from escalating into a full-blown crisis. “The government cannot allow the gas supply to be cut off,” a senior official stated.
Although details of the intervention remain unclear, insiders believe the government may settle part of the outstanding debts, as it has done in the past, to maintain the gas supply.
Industry Concerns
Dr. Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, confirmed on Wednesday that gas suppliers had already informed Gencos of their decision to halt supply until outstanding debts were paid.
“The total debt has now increased to over N2.7tn. About 70% of thermal Gencos’ invoices are for gas, and we have been paying only a small fraction of this,” Ogaji stated. She added that stakeholders, including the Nigerian Electricity Regulatory Commission and the Presidency, were aware of the crisis.
Federal Government Promises Relief
Earlier this year, Minister of Power Adebayo Adelabu assured stakeholders that the Federal Government would begin paying down its debts to Gencos and gas suppliers. During a visit to Egbin Power Plc, he pledged to work with the Central Bank of Nigeria to prioritize foreign exchange allocations for the power sector, which would enhance generating capacity.
“The Federal Government is now prioritising paying down on the outstanding debts, and effective from April, we will start paying down on debts, as a form of incentive to continue to have them in operation,” Adelabu said.
Looking Ahead
With power generation restored to over 3,500MW, efforts to stabilize the grid and address the financial challenges in the electricity sector are ongoing. However, experts warn that without sustainable solutions to the debt crisis, future disruptions to Nigeria’s power supply remain a significant risk.