The power sector crisis

Despite government’s interventions in the power sector, Nigeria’s electricity supply has been very erratic in recent times. The crisis in the nation’s power sector worsened early in March, 2026 with further decline recorded in power generation capacity of the national grid.  Nigerian Independent System Operator (NISO) data showed that generation plummeted to 3,940.53 megawatts after several generating units shut down due to inadequate gas supply. Available statistics also showed a cumulative reduction of approximately 292 MW in generation on the grid. This has compelled electricity distribution companies (DisCos) to embark on load shedding across business districts nationwide thereby compounding Nigeria’s energy challenges.

NISO has issued a notice to stakeholders and the general public, citing the decline in power generation to the national grid, which has been encountering persistent gas supply constraints affecting several thermal power plants. According to operational data, thermal power plants require approximately 1,588.61 million standard cubic feet (MMSCF) of gas daily to operate at optimal capacity. Gas supply to these stations was approximately 652.92MMSCF within this period. It represents about 41% of the gas required for optimal generation.

The operator has lamented that the discrepancy further reduced the total generation available for distribution to the national grid, hence contributing to the current generation shortfalls being experienced across the system. NISO also stated that it is actively working with the affected Generation Companies (GenCos) and relevant gas suppliers to closely monitor the situation and facilitate the restoration of generation as soon as gas supply to the affected plants stabilizes.

To avoid the system from total collapse, operators have resorted to load shedding, with power being cut in some places for days and weeks. The sharp drop in power supply has affected businesses and homes across the country. Nigerian manufacturers have begun cutting their output. Using alternative energy sources, like diesel and fuel generators, is neither cost effective nor capable of generating the same power supply as electricity generating companies. Also, manufacturers have pushed up the extra costs to the public, thereby increasing the costs of living.

Domestic users of power and medium scale industries are lamenting the power cuts. Band A customers, who are entitled to a minimum of 20 hour energy supply, are miffed. Manufacturers are lamenting that the high cost of diesel has limited the hours they will run their generators and running solar means diverting power from batteries. To achieve that, air conditioners and other appliances needed for optimum delivery are turned off. Productivity is, thus, affected. It is, therefore, compelling for Nigeria, as an emerging economy, to diversify its energy sources to renewable energy.

At the moment, over 75 per cent of Nigeria’s energy comes from gas-fired plants. These units require steady supply of gas to operate. Besides, payment delays in the gas value chain, pipeline constraints, and maintenance disruptions pose a big challenge. To ensure steady gas supply to the power grid, the gas supply impediments must be urgently addressed. Gas suppliers are in business to make profits. Tying down their finances does not augur well for good business. In a bid to improve power supply, the federal government settled all outstanding gas supply debts in December, 2025. With the rising cost of gas worldwide due to the ongoing Middle East conflict, the federal government should ensure steady gas supply to the thermal plants. In the interim, Nigeria should explore alternative sources of electricity to ramp up its power supply. Let there be more emphasis on solar energy.

In spite of promises by past administrations to fix the power sector, its challenges appear more daunting. While Nigeria is struggling to supply between 4,00MW and 5,000MW of electricity, its counterparts in Africa have delivered more stable electricity supply. Egypt, Tunisia and South Africa have stabilised their electricity supply. We hope that the 11-member committee set up by President Bola Tinubu to oversee the seamless incorporation of the Grid Asset Management Company (GAMCO) will indeed fix the nation’s power grid. The Minister of Information and National Orientation, Mohammed Idris, on Wednesday explained that GAMCO was a new entity established to address the nation’s intractable power transmission challenges.

The nation’s recurring power outage must stop forthwith. If Egypt, Tunisia and South Africa can provide efficient electricity to their citizens, Nigeria can equally do so. We have the human and material resources to give Nigerians steady electricity. There should be no excuses. Our electricity supply should move from the 10,000MW target to 30,000MW in the first instance. Thereafter, we shall target 60,00MW and above. Let the government fix the power sector.