Nigeria’s electricity supply is facing fresh pressure as unpaid debts owed to gas suppliers by power generation companies have reportedly risen to ₦639 billion, raising concerns about the continued availability of gas for electricity generation.
The growing debt has increased concerns among industry stakeholders, who warn that gas suppliers may struggle to maintain consistent deliveries to power plants if outstanding payments are not addressed.
Gas remains one of the major sources of electricity generation in Nigeria. Several thermal power plants depend on natural gas to produce electricity supplied to the national grid. Any disruption in gas supply can therefore affect the amount of electricity available to homes, businesses and industries.
The development comes at a time when Nigerians are already dealing with frequent power interruptions, rising operating costs and the increasing cost of alternative energy sources such as petrol and diesel generators.
Industry stakeholders have called for a more sustainable payment arrangement within the electricity value chain, stressing that gas suppliers need to receive payments promptly to continue providing the fuel required by power plants.
The situation also highlights the financial difficulties affecting Nigeria’s electricity sector, where distribution companies struggle with revenue collection, while generation companies face challenges receiving payments for the electricity they supply.
For businesses, manufacturers and households, prolonged gas supply challenges could mean further pressure on an already unreliable electricity system.
Stakeholders believe that resolving the outstanding debt and establishing a reliable payment structure will be necessary to improve confidence among gas suppliers and strengthen electricity generation across the country.
The Federal Government and relevant industry regulators are expected to face renewed pressure to address the financial challenges affecting the power sector.
