Nigeria is facing the threat of nationwide blackouts as gas companies have cut supply to power plants over an outstanding N5.6 trillion debt owed to power generation companies (GenCos).
The development has heightened concerns about the stability of the national grid and the country’s ability to sustain electricity supply.
Managing Director/Chief Executive Officer of the Association of Power Generation Companies, Dr. Joy Ogaji, confirmed the development in an interview with The PUNCH on Thursday. She warned that unless urgent action is taken, Nigeria could be pushed deeper into darkness.
The warning came shortly after another national grid collapse earlier in the week left the entire country in blackout. Although partial restoration has since brought back about 4,000 megawatts, many power plants are still running below capacity.
Ogaji explained that while GenCos remain committed to supporting Nigeria’s energy needs, the sector’s liquidity crisis has spiralled out of control. She revealed that between January and August 2025 alone, an additional N1.6 trillion debt had been added, raising the total outstanding to N5.6 trillion.
Industry experts have urged urgent intervention to stabilise the power sector, warning that continued supply cuts could further damage the economy and worsen living conditions for millions of Nigerians.