Nigeria’s power sector is facing renewed pressure, raising fears of widespread blackouts during the Yuletide, as gas suppliers have begun cutting supplies to electricity generation companies over unpaid debts and pipeline disruptions.
Electricity distribution companies across several regions confirmed a noticeable decline in power availability, attributing the situation to gas constraints affecting thermal power plants and resulting in reduced generation on the national grid.
On Tuesday, the Enugu Electricity Distribution Company (EEDC) alerted customers across the South-East to the development, citing low system frequency caused by inadequate gas supply to generation companies. The shortfall, EEDC said, had compelled the Transmission Company of Nigeria (TCN) to implement load shedding.
In a statement signed by its Group Head, Corporate Communications, Emeka Ezeh, EEDC explained that the reduced generation had significantly affected energy allocation to its network, leading to lower daily service levels for customers served by its franchise operators—MainPower, TransPower, FirstPower, NewEra and EastLand.
“The recent drop in power supply availability is due to low system frequency occasioned by gas constraints affecting the generation companies,” the statement said. “This development has necessitated the load shedding of available energy by the Transmission Company of Nigeria.”
EEDC added that industry stakeholders were working to resolve the challenge and restore normal supply, while apologising to customers for the inconvenience.
Similarly, the Port Harcourt Electricity Distribution Company (PHED) issued a notice to customers, attributing ongoing load shedding across its franchise areas to poor generation and reduced allocation from generation companies. The utility appealed for patience as efforts were underway to improve output.
Generation companies have confirmed that gas supply constraints are directly impacting operations. The Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, disclosed that gas producers had begun cutting supplies due to mounting debts owed to them.
Nigeria experienced prolonged power outages in the first quarter of 2024 after gas suppliers halted deliveries to thermal plants over unpaid obligations. Although government intervention temporarily resolved the crisis, gas producers have since complained of continued supply without corresponding payments.
In a bid to address the liquidity crunch, the Federal Government on December 4, 2025, approved N185 billion for the settlement of outstanding debts owed to natural gas suppliers. The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, announced the approval in a statement issued by his media aide, Louis Ibah, noting that it was granted by the National Economic Council, chaired by Vice President Kashim Shettima.
However, the reasons gas suppliers proceeded to cut supplies despite the approval remain unclear. Efforts to obtain comments from the spokesman of the Minister of Power, Adebayo Adelabu, were unsuccessful as of the time of filing this report.
With generation constrained and distribution under strain, power supply remains unstable in many parts of the country, heightening concerns over sustained outages unless the gas-to-power liquidity crisis is urgently resolved.
Pipeline Vandalism Worsens Situation
Meanwhile, the Nigerian Independent System Operator (NISO) said electricity generation on the national grid had dropped following gas supply disruptions caused by vandalism of upstream gas pipelines.
In a statement signed by its management, NISO disclosed that the incident disrupted gas supply to several gas-fired power plants, forcing them to operate at significantly reduced capacity and leading to a sharp decline in available generation nationwide.
“The Nigerian Independent System Operator wishes to inform the general public and sector stakeholders that electricity generation on the national grid has dropped due to gas supply constraints arising from a reported incident of gas pipeline vandalisation,” the statement said.
NISO noted that the incident underscored the vulnerability of Nigeria’s power sector, where over 80 per cent of grid-connected generation capacity depends on natural gas. The operator said it had activated contingency measures to maintain grid stability, including increased dispatch from hydroelectric stations, generation re-dispatch, voltage control interventions and other operational adjustments.
The system operator added that it was closely monitoring grid conditions and working with stakeholders across the electricity value chain to mitigate the impact of the disruption, warning that the timing was particularly concerning as electricity demand typically rises during the festive season.
