• Up to 16 Nigerian power plants offline, cutting generation capacity

• Output drops to 3,700-4,000 MW amid gas shortages, sector debt

• Government plans bonds to clear debts, stabilize electricity supply

Up to 16 of Nigeria's 33 power plants have gone offline in recent days, cutting available electricity on the national grid, local press reported Wednesday.

The shutdowns have reduced generation capacity to between 3,700 and 4,000 megawatts. In recent months, output ranged from 4,000 to 5,500 MW, according to official data from the Nigerian Electricity Regulatory Commission (NERC).

The outages coincide with persistent financial difficulties reported by power generation companies, known as GenCos. The firms say cumulative debt has reached 6,800 billion nairas (approximately $4.3 billion). Arrears are disrupting natural gas supply, which accounts for roughly 70% of Nigeria's electricity mix.

Nigerian authorities have announced measures in response. The federal government plans to raise up to 4,000 billion nairas (approximately $2.6 billion) through bonds to clear part of the sector's debt, Nairametrics reported.

Nigeria's Power Sector: A Chronic Crisis

Nigeria's electricity system has long been plagued by recurring disruptions. The country recorded multiple grid collapses in 2024, causing widespread outages affecting households and businesses, Ecofin Agency reported in January 2025.

Output remains volatile. Power generation fell to around 4,300 megawatts due to a gas shortage, according to data from the grid operator Transmission Company of Nigeria (TCN) reported in early March 2026. Natural gas is the primary fuel source for the country's thermal power plants.

Financial strains compound operational constraints. Nigeria mobilized $360 million to settle part of the arrears owed to electricity sector operators, including power producers, the Nigerian Ministry of Finance said in February 2026.

Separately, the Rural Electrification Agency (REA) is running a solar energy program that aims to mobilize $1.1 billion in investment to develop 1,350 mini-grids in rural areas.

Federal authorities have also announced a reform to subsidy financing, under which costs will now be shared across different levels of government. Meanwhile, Nigeria needs approximately $34 billion to achieve universal electricity access, according to estimates presented at the Nigeria Energy Conference in October 2025.

Abdel-Latif Boureima