The Federal Government recorded a total of N358.32 billion in electricity tariff shortfall liabilities during the first quarter of 2026. Data released by the Nigerian Electricity Regulatory Commission indicates that the public treasury absorbed the massive fiscal bill to shield end-users from paying cost-reflective power pricing. According to the sector regulator, the quarterly expenditure represents an average monthly intervention of over N119 billion to keep consumer tariffs frozen at the previous benchmark rates established in July 2024.

The financial data highlights a 14.44 percent reduction from the N418.79 billion intervention fund reported in the final quarter of 2025. However, the regulatory commission clarified that this spending drop does not stem from operational enhancements or tariff adjustments. Instead, the primary driver was an 8.56 percent decline in energy offtake by the various distribution companies during the three-month window. Consequently, the national government still wound up financing roughly 52 percent of the cumulative wholesale invoices valued at N689.72 billion issued by electricity generation firms.

Under the current technical remittance framework administered through the Nigerian Bulk Electricity Trading Plc, distribution operators were only billed N331.40 billion for the quarter. The regulatory body warned that this open-ended financing model exposes state resources to unpredictable volatility related to fluctuating generation outputs and shifting thermal energy mixes. Despite the massive public capital injection, power supply reliability across the federation weakened significantly during the period, hampered by a 17.45 percent contraction in average available generation capacity and multiple high-impact system collapses on the national grid.

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Nigeria’s power generation companies have raised fresh concerns over the growing financial challenges facing the electricity sector, warning that increasing debt obligations and stranded generation capacity continue to threaten the industry’s sustainability.

Industry operators said the sector has recorded an additional debt burden estimated at ₦1 trillion, adding to longstanding liabilities that have accumulated over the years. They noted that persistent payment shortfalls across the electricity value chain have placed significant pressure on generation companies, limiting their ability to meet operational and financial obligations.

The companies also expressed concern over stranded power capacity valued at approximately ₦2.376 trillion. According to industry stakeholders, stranded power refers to electricity generation capacity that remains underutilised due to transmission, distribution, and market constraints despite investments made to increase production capacity.

Power producers argued that the continued inability to fully evacuate and distribute generated electricity has resulted in substantial financial losses while discouraging further investment in the sector. They maintained that significant resources have been committed to expanding generation capacity, yet much of the available power cannot reach end users because of infrastructure limitations.

Stakeholders further highlighted the broader liquidity crisis affecting the Nigerian Electricity Supply Industry, noting that outstanding invoices, foreign exchange pressures, and rising operational costs have continued to weaken the financial position of generation companies. Industry figures indicate that debt owed to power producers has risen sharply over the years, creating challenges for plant maintenance, gas procurement, and future investments.

The Association of Power Generation Companies has repeatedly called for urgent intervention to address payment backlogs and improve market efficiency. Industry leaders believe that resolving the debt burden and eliminating constraints responsible for stranded capacity would significantly improve electricity supply and attract fresh investment into the sector.

Experts have also stressed the need for stronger coordination across the generation, transmission, and distribution segments of the electricity market. They argue that without improvements in infrastructure and market settlement mechanisms, Nigeria may continue to face challenges in fully utilising its installed power generation capacity despite growing demand for electricity.

As discussions on sector reforms continue, power producers remain hopeful that government-led initiatives aimed at addressing outstanding liabilities and improving liquidity will provide relief and support long-term stability within the electricity industry.

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Abuja Electricity Distribution Plc (AEDC) has clarified that the ongoing electricity outages affecting Lafia, Keffi, Nasarawa, Masaka, and surrounding communities in Nasarawa State are largely due to factors beyond its control.

The company cited limited power allocations from the national grid, compounded by seasonal and infrastructural challenges, as the primary reasons for the extended disruptions.

In a statement released on Wednesday, AEDC highlighted that power allocations to Lafia have recently hovered between 5MW and 10MW, far below the demand required to meet the needs of residents, businesses, and government institutions in the state capital and adjoining areas.

“The Management of Abuja Electricity Distribution Plc (AEDC) wishes to inform our valued customers in Lafia, Keffi, Nasarawa, Masaka, and other affected communities that the current supply constraints are largely due to national-level factors beyond our direct control,” the statement read.

According to AEDC, Nigeria’s power sector experiences significant limitations during the dry season, which typically runs from November to April. During this period, hydropower generation declines due to low dam water levels, while several thermal plants face reduced gas supply caused by pipeline vandalism, operational disruptions, and broader supply-chain issues. These factors collectively result in lower overall electricity generation, reducing the amount of power available for distribution companies across the country, including AEDC.

The company also explained that disruptions in gas supply and system limitations have occasionally led to dramatic drops in allocations from the national grid, affecting energy availability for end-users. “Despite our efforts, power allocations have at times been insufficient to meet the growing demand, creating frustrations for our customers,” AEDC said, emphasizing its commitment to transparency and accountability in communicating these challenges.

AEDC assured that, where possible, it has increased supply to Lafia to approximately 10MW, even as pressures from neighboring regions and national limitations persist. The company also called for cooperation among stakeholders, including generation companies, gas suppliers, regulators, and DisCos, to ensure that electricity supply stabilizes across affected regions.

The ongoing outages have sparked concerns among residents and businesses, who face extended periods without electricity, affecting both domestic life and commercial activities. Energy experts argue that these recurring shortages underline structural weaknesses in Nigeria’s power sector, highlighting the need for improved coordination, investment in infrastructure, and proactive planning to address growing urban energy demands.

“The current power situation is not only a technical challenge but also a socioeconomic one,” said an energy analyst who requested anonymity. “Limited electricity availability in fast-growing states like Nasarawa impacts productivity, disrupts business operations, and can stall economic growth if prolonged.”

AEDC further clarified that the outages are not due to mismanagement at the distribution level but are symptomatic of systemic issues affecting Nigeria’s energy supply chain. This includes insufficient gas deliveries, operational downtime at generation plants, and inadequate maintenance of transmission infrastructure.

For residents in affected areas, the company urged patience and understanding, stressing that solutions require national-level interventions and coordinated responses from multiple stakeholders. AEDC said it remains committed to restoring consistent power supply wherever possible and is actively monitoring grid allocations to maximize available energy.

The situation in Nasarawa serves as a reminder of broader national challenges in the power sector, where seasonal variations, infrastructural deficits, and supply-chain vulnerabilities can create significant disruptions for consumers. Analysts recommend that federal and state governments prioritize investment in energy infrastructure, enhance monitoring systems, and promote greater collaboration between gas suppliers, power generators, and distribution companies.

AEDC reaffirmed its empathy with customers affected by the outages, noting that while the company strives to provide reliable electricity, addressing systemic power sector challenges requires collective action. For now, residents and businesses in Lafia, Keffi, Nasarawa, and Masaka must navigate ongoing constraints while awaiting coordinated national-level interventions to stabilize supply and support economic activity.

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The National Union of Electricity Employees (NUEE) has threatened a nationwide strike following an alleged attack on its members by police at the Egbu 132/33 kV Transmission Substation in Imo State.

According to the union, police officers reportedly beat staff, held them at gunpoint, and forced them to operate circuit breakers. Workers’ phones, laptops, vehicles, and CCTV equipment were also said to have been damaged.

In response, NUEE has ordered its members in Imo State to suspend work until assurances are given for their safety.

The union has demanded the release of abducted workers, compensation for damaged property, medical care for the injured, and official guarantees of protection for electricity staff.

NUEE warned that failure to meet these demands could result in a nationwide electricity shutdown.

The Imo State Police Command, however, denied any abduction took place, describing the incident as a dispute between two electricity companies, EEDC and Orashi. Investigations are ongoing.

If the union proceeds with its strike, households and businesses across Nigeria could face significant power disruptions.

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Dangote believes Nigeria should be producing at least 50,000 to 60,000 megawatts. Right now, the country generates only about 4,500 to 5,000 megawatts. He said this level is not enough for a nation of over 200 million people.

The billionaire pointed out that his refinery project is proof that big projects can succeed in Nigeria. He believes similar success is possible in the power sector. He added that increasing electricity generation is not as hard as building the refinery.

Dangote stressed that solving the power crisis is not the government’s job alone. The power sector has already been privatised. He called on private companies and wealthy individuals to invest more in the country.

He urged Nigerian investors to stop sending money overseas. Instead, they should invest in the local economy. He said this will help build the country and boost confidence in the system.

Dangote linked capital flight to poor economic growth. He said stolen funds taken abroad do not benefit anyone. According to him, the money isn’t used by those who take it, and it doesn’t help the local economy.

Looking ahead, Dangote plans to grow his fertiliser business. He aims to become the world’s largest producer in 40 months. His goal is to reach 12 million tonnes in annual production.

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