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Businesses struggle, households groan as electricity generation worsens in Nigeria

The FrontierThe FrontierMarch 16, 2026 837 Minutes read0

Nigeria is once again facing widespread electricity disruptions as reduced gas supply to thermal power plants has forced the national grid to operate far below capacity, deepening power outages across the country and placing fresh pressure on households and businesses.

The Nigerian Independent System Operator (NISO) had confirmed that scheduled maintenance at a major gas supply facility constrained fuel delivery to several grid-connected power stations, triggering a decline in electricity generation and forcing system operators to manage supply through load shedding.

Sources told our correspondent that the problem of gas supply shortage is multifaceted, noting that part of the problem is also legacy debt to gas suppliers, reports Daily Independent.

According to NISO, the maintenance exercise, carried out between February 12 and February 15, temporarily reduced gas supply to major thermal power plants including Egbin, Azura, Sapele and Transcorp Power. Other generating stations such as NDPHC Sapele, Olorunsogo and Omotosho were also indirectly affected as the gas network struggled to maintain balance across the system.

Because gas-fired plants produce the bulk of Nigeria’s electricity, even a short disruption in supply can significantly reduce national power output. As generation declined, distribution companies were forced to ration electricity across their networks, resulting in prolonged outages in many communities.

NISO warned that the situation could lead to continued load management across the national grid, including electricity rationing and load shedding until normal gas supply levels are restored. Gas shortages have long been identified as a major factor behind electricity instability in the Nigerian Electricity Supply Industry (NESI).

Recently, the Chief Executive Officer of the Association of Power Generation Companies, Dr. Joy Ogaji, warned that the country’s electricity supply could deteriorate further as gas producers begin to halt supply to thermal plants over an estimated N3.3 trillion debt owed by generating companies.

Ogaji cautioned that the mounting financial crisis across the power value chain could push the sector toward a major disruption if urgent interventions are not implemented.

Her warning comes amid worsening electricity supply nationwide, with many Nigerians experiencing longer blackout periods since the beginning of the year.

Operational data from NISO shows that national power generation has recently dropped below 4,000 megawatts, largely due to gas supply constraints affecting thermal power plants.

As of last Tuesday, the country’s 11 electricity distribution companies were sharing just 3,053MW— far below the level required to ensure stable electricity supply across their franchise areas. Further data from the system operator reveals the depth of the gas supply deficit.

Thermal plants require approximately 1,629.75 million standard cubic feet of gas per day (mmscf/d) to operate optimally. However, as of February 23, 2026, actual supply stood at about 692 mmscf/d—less than 43 percent of the required volume.

With gas supply falling sharply, several power plants have scaled down operations or temporarily shut down, leaving the Transmission Company of Nigeria with little choice but to ration available electricity across the grid.

Distribution companies have repeatedly informed customers that the outages are linked to gas shortages affecting generation. For millions of Nigerians, the official explanations merely confirm what they are already experiencing longer hours without electricity.

In Lagos, the country’s commercial hub, residents say power supply has become increasingly erratic. At a small printing shop in Surulere, Lagos, 42-year-old business owner, Femi Akingboye, said his operating costs have surged as he relies more heavily on petrol generators. “We used to get eight to ten hours of electricity daily, but now it has dropped to three or four hours,” Akingboye said.

“My generator runs almost the whole day. The cost of petrol is eating deep into my income.” In Ebutte Metta, Lagos, food vendor, Mrs. Funke Oladipo, said unreliable power is affecting her ability to preserve food items.

“Without electricity, my freezer cannot keep the fish and meat I sell,” she said.

“Sometimes the food spoils overnight. The losses are painful.” In the Federal Capital Territory (FCT), residents report frequent outages lasting more than 12 hours in some neighbourhoods. At Gwarinpa Estate, civil servant Ibrahim Musa described the electricity situation as increasingly unpredictable.

“Sometimes the power goes off in the morning and doesn’t return until late at night,” Musa said.

“We depend on electricity for everything—pumping water, charging phones and running household appliances.”

He added that the cost of alternative power has become a heavy burden for many families. “I spend about N10,000 daily on fuel for my small generator,” he said.

“That money should go to food or my children’s school fees.”

In Kano, one of Nigeria’s major commercial centres, unstable electricity supply is disrupting daily business activities.

At Sabon Gari market, electronics repair technician Abdulrahman Sani said the outages have slowed down his work. “Many devices cannot be repaired without electricity,” he explained.

“When there is no power, customers become impatient because their jobs are delayed.”

Nearby, in No man’s land area of the city, frozen food dealer Zainab Lawal said she has been forced to reduce the volume of goods she purchases. “I now buy smaller quantities because I cannot rely on electricity,” she said.

“Running generators throughout the day is too expensive.”

Nigeria’s manufacturing sector is also feeling the impact of the electricity shortage. Industrial operators in cities such as Aba, Port Harcourt and Ibadan say unreliable grid supply has forced them to depend heavily on diesel generators.

In Aba, shoe manufacturer, Chukwuemeka Okafor, said the rising cost of self-generated power is driving up production expenses. “Electricity from the grid should reduce our operating costs,” he said. “But when supply is unreliable, we rely on diesel generators, which are very expensive.”

According to him, energy now accounts for a large share of production costs, ultimately pushing up the price of locally manufactured goods. Healthcare facilities are equally affected by the unstable electricity supply.

At a private hospital in Ibadan, medical laboratory scientist, Dr. Kemi Afolabi, said reliable electricity is essential for running diagnostic equipment and storing vaccines. “When power supply becomes erratic, hospitals must rely on generators,” she said. “But fuel costs are rising, and not every facility can afford to run generators continuously.”

She warned that prolonged outages could disrupt sensitive medical procedures and compromise patient care. Energy experts say the recurring electricity shortages highlight structural weaknesses in Nigeria’s power sector. Unlike many countries that generate electricity from a diversified mix of sources, Nigeria relies heavily on gas-fired thermal power plants.

These plants require a consistent supply of natural gas to operate efficiently. Any disruption — whether caused by maintenance work, pipeline vandalism or technical faults — can quickly reduce electricity generation. NISO explained that the temporary maintenance shutdown at the gas facility reduced fuel availability to several large power stations, resulting in lower generation levels across the grid.

To prevent a broader system collapse, NISO said it is implementing real-time operational measures to maintain grid stability during maintenance periods. The National Control Centre is monitoring generation levels closely while coordinating with distribution companies to manage available electricity supply.

The operator stated that load shedding will be carried out in a structured and equitable manner, with priority supply directed to critical infrastructure such as hospitals, security facilities and other essential public services.

However, many consumers across the country are still expected to experience intermittent power outages. Industry analysts say the persistent electricity shortages underline the urgent need for reforms across the entire energy value chain — from gas production and transportation to power generation and distribution.

Despite possessing one of the largest natural gas reserves in Africa, Nigeria continues to face difficulties delivering adequate fuel to power plants due to infrastructure limitations and operational challenges.

Power sector expert, Engr. Tunde Balogun, said strengthening gas supply reliability is essential to stabilising electricity generation.

“Gas is the backbone of Nigeria’s electricity sector,” he said.

“If the gas system is unstable, the power sector cannot function effectively.” He also recommended diversifying Nigeria’s energy mix by expanding investment in renewable sources such as solar, hydro and wind. For many citizens, however, the immediate concern is coping with daily life without reliable electricity.

In Port Harcourt, restaurant owner Blessing Ekanem said the outages are making it increasingly difficult to run her business. “My customers expect cold drinks and properly preserved food,” she said.

“Without electricity, everything becomes complicated.”

University student Samuel Olatunji in Ibadan expressed similar frustration. “Sometimes there is no light for hours at night,” he said. “Generators are noisy and expensive to run. It affects our ability to study.”

 

 

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Businesseselectricity generationHouseholdsNigeria
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