Gas suppliers are planning to halt gas supply to thermal power plants due to an estimated ₦3.3 trillion debt owed by electricity generation companies (GenCos), according to Joy Ogaji.
Gatekeepers News reports that Ogaji, who is the chief executive officer of the Association of Power Generation Companies (APGC), disclosed this during an interview with Fresh FM on Wednesday.
She said Nigeria’s electricity crisis is largely driven by the inability of Nigerian Bulk Electricity Trading Plc (NBET) to fully pay for electricity generated by GenCos since the power sector was privatised in 2013.
According to Ogaji, the Federal Government currently owes power generation companies about ₦6.8 trillion, with roughly 70 percent of the debt attributed to thermal power plants.
She explained that the portion owed by thermal plants amounts to about ₦4.76 trillion, out of which around 70 percent—approximately ₦3.3 trillion—is owed to gas suppliers.
“NBET is set up to buy power from GenCos and sell to distribution companies. The aim is that as they buy power, they will pay in full, but since 2013 till today, they’ve never paid in full, so this debt is now ₦6.8 trillion,” she said.
Ogaji said the debt profile grew steadily over the years, rising to ₦4 trillion between 2015 and December 2024.
“In each month of 2025, there is a shortfall of ₦200 billion. If you calculate ₦200 billion times 12, that is ₦2.4 trillion, making the whole debt ₦6.4 trillion after December 2025,” she explained.
She added that the debt has continued to increase in 2026.
“We’re already in March 2026. The debt grew to ₦6.6 trillion in January and ₦6.8 trillion in February. At the end of March, you need to add ₦200 billion again to make it ₦7 trillion.”
Ogaji said a large share of the outstanding debt is linked to gas supply because thermal power plants account for most of the electricity generated on the national grid.
She noted that while some power plants rely on hydroelectric power, the majority depend on gas-fired generation.
“The generation companies have hydros, and we have thermal power plants. The thermal power plants are the ones that use gas. The hydro plants use water, so they do not owe gas suppliers,” she said.
According to her, Nigeria currently has about 30 power plants connected to the national grid, with roughly 30 percent operating as hydro plants following the addition of 700 megawatts from the Zungeru Hydroelectric Power Station.
This means about 70 percent of electricity generation is gas-powered.
“Therefore, for every ₦100 the thermal plants invoice NBET, ₦70 belongs to the gas suppliers,” she said.
Electricity Shortfall
Ogaji warned that the worsening debt crisis is a major factor behind the country’s persistent electricity shortages.
“Correct to say that the debt is the reason why we are in darkness,” she said.
She explained that gas producers are increasingly insisting on upfront payment before supplying fuel to power plants.
“Gas is not available because the gas suppliers have told us that if we need gas, we need to put money on the ground to get gas in the pipe. We owed them a lot of money,” she said.
While commending the gas suppliers for continuing to supply fuel despite the debts, she warned that the situation may soon change.
“The gas suppliers have really been very kind to us. They are the reason why the thermal plants are still generating power. But now, they have told us that if there’s no payment, there will be no gas for the thermal power plants.”
Ogaji added that the financial crisis has also made it difficult for many generation companies to service bank loans taken during the 2013 privatisation of Nigeria’s power sector.
