Blackout worsens in Nigeria as GenCos shutdown gas plants over debt

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Nigeria’s power outage situation has deteriorated, with power generation companies (GenCos) ceasing operations due to an escalating debt burden that has reached approximately N6.8 trillion.

According to a report by Bloomberg, as of Tuesday, 16 out of Nigeria’s 33 power plants were not generating electricity, according to data from the Nigeria Independent System Operator (NISO).

The plants that are affected suffer from their failure to secure gas supplies, cover basic operational costs, and maintain equipment.

The liquidity generation sub-sector reflects the challenges faced throughout the Nigerian Electricity Supply Industry, as stated by Joy Ogaji, CEO of the Association of Power Generation Companies (APGC).

She emphasized that the generation of adequate financial sub-value for the country will no longer allow services to be provided to Nigerians.

“We cannot maintain the machines,” Ogaji said, adding that without adequate funding, equipment cannot be serviced, underscoring the severity of the cash flow crisis confronting the sector.

“Money for hand, light for house, gas for pipe. This is more than an industry issue. It is an economic imperative.

“Reliable power is the backbone of industrialization, job creation, and national development. The time to act is now,” she said.

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