Nigeria’s power generation companies have not shut down, but operations are slowing sharply due to mounting debt and poor liquidity, industry officials say.
The Chief Executive Officer of the Association of Power Generation Companies, Dr. Joy Ogaji, told our team that only a few plants are operating optimally, despite reports of widespread shutdowns.
“GenCos have not halted operations, but they are grinding down,” she said.
Her comments come as outages worsen nationwide.
A Bloomberg report, citing data from the Nigerian Independent System Operator, says 16 of Nigeria’s 33 plants were not supplying power as of Tuesday.
Operators blame a N6.8 trillion debt burden, which they say has made it difficult to maintain equipment, secure gas and meet basic costs.
“We cannot maintain the machines,” Ogaji said. “Without funding, equipment cannot be serviced.”
She warned the crisis goes beyond the power sector.
“Reliable power is the backbone of industrialization, job creation and national development. The time to act is now,” she added.
Meanwhile, weak transmission infrastructure continues to limit supply, even as neighboring countries like Benin and Togo seek more electricity from Nigeria.
Industry experts say urgent investment in funding and infrastructure is needed to prevent further declines in power generation and supply.
