Nigeria’s gas-fired power plants are receiving less than half the fuel they need, worsening electricity supply in Africa’s most populous country, the grid manager said on Friday.
The shortage is tied to mounting sector debt from government subsidies, which operators say has risen to 6-trillion naira (R71.25bn) this month. As a result, gas deliveries to power plants have dropped to less than half required volumes.
National generation has slipped to about 4,300MW, forcing the grid operator to limit electricity supply — known as “load shedding” — and cut allocations to power distributors to keep the system stable.
Thermal stations need about 1,630-million standard cubic feet (mmscf) of gas per day, but actual supply by February 23 was only about 692 mmscf — roughly 43% of required volumes, the Nigerian Independent System Operator (Niso) said.
“The shortfall has constrained national output and reduced the amount of power allocated to distribution companies,” Niso said.
It added that when total system generation falls sharply, it must implement load shedding while distributing available energy in line with regulated allocation percentages to maintain grid stability.
Last year, the government approved a phased plan to refinance 4-trillion naira (R47.49bn) in electricity sector debt to stabilise the struggling industry. The debt — owed mainly to 27 power generation companies for unpaid invoices from 2015 to 2023 — has deterred investment and worsened already severe outages.
In January, the government issued the first tranche of a 501bn naira bond aimed at restoring liquidity. Operators say the measure is not enough, arguing that total debt has since climbed to 6-trillion naira.
The deteriorating supply has also hit tariff reforms. Even the roughly 15% of wealthier consumers who recently saw higher tariffs based on their ability to pay and higher consumption levels are now receiving erratic electricity, prompting many to consider abandoning the grid.
Nigeria: Govt Sets Up Steering Committee for National Gas Infrastructure Centre
The federal government has inaugurated a steering committee and Joint Technical Working Group (JTWG) to drive the establishment of the National Gas Infrastructure Command Centre (NGCC), a centralised digital platform aimed at strengthening transparency, coordination and operational efficiency across Nigeria’s gas value chain.
Enabled by the Petroleum Industry Act (PIA) 2021, the initiative will provide real-time oversight of Nigeria’s national gas infrastructure, and is expected to unlock greater value from Nigeria’s vast gas reserves, in the nation’s quest to grow natural gas production to 12Bscfd by 2030.
The NGCC will be established under a private sector-led Public-Private Partnership (PPP) model under regulatory supervision of the Infrastructure Concession Regulatory Commission (ICRC), with no financial exposure to the federal government, a statement by Louis Ibah, spokesman to the Minister of Petroleum (Gas), “Ekperikpe Ekpo, said.
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Engineering Automation Technology Limited. (EATL), an indigenous firm and project promoter, will handle system design and funding mobilisation, in partnership with its Original Equipment Manufacturer (OEM), the statement added.
Speaking at the inauguration, Ekpo described the command centre as a critical enabler of Nigeria’s gas-to-power ambitions and broader industrialisation agenda under the ‘Decade of Gas Initiative.’
He said the steering committee will provide strategic direction, ensure policy alignment and strengthen inter-agency collaboration, while guiding phased implementation. The JTWG, he added, will develop the technical framework for the centre, including system architecture, data standards, operational protocols and risk mitigation measures required for an integrated national command system.
“The NGCC is a national asset that requires unified effort and a focus on outcomes that benefit all Nigerians. The government expects clear deliverables, actionable recommendations and consistent progress reporting,” he said.
Managing Director/Chief Executive Officer of EATL, the project promoter, Dr Emmanuel Okon, described the initiative as a strategic national platform for real-time monitoring, operational coordination, emergency response and optimisation of Nigeria’s natural gas infrastructure network.
He said the NGCC would enable real-time monitoring and coordination across the entire gas infrastructure network, covering all operators to enhance safety, efficiency and system reliability. The platform, he added, will drive optimisation and transparency across pipelines, processing facilities and commercial gas flows to improve utilisation.
Permanent Secretary of the Ministry of Petroleum Resources, Mrs Patience Oyekunle, described the NGCC as a critical national asset that will strengthen automation and coordination across the country’s gas infrastructure.
Also speaking, Director General of the ICRC, Dr Jobson Ewalefoh, underscored the strategic importance of the NGCC, describing it as both a transformative governance instrument for the gas sector and a national security asset.
In his remarks, Executive Vice President, Gas, Power and New Energy, Nigerian National Petroleum Company Limited (NNPC), Olalekan Ogunleye, expressed the readiness of the state-owned energy company to collaborate with investors, such as EATL, to realise the federal government’s objectives for the gas sector.
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https://allafrica.com/stories/202603030018.html
https://www.timeslive.co.za/news/africa/2026-03-02-nigerias-grid-capacity-shrinks-with-gas-supply-at-43/
