Power Generation Shrinks By 62% As Plants Operate Below Capacity

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Nigeria power sector is facing renewed strain as electricity generation has reportedly fallen by sixty two percent with many plants operating far below installed capacity. The decline has reignited concerns about the sustainability of the energy system and its impact on economic growth.

Industry sources attribute the drop to a combination of gas supply constraints aging infrastructure poor maintenance and liquidity challenges across the power value chain. Several thermal plants have been forced to reduce output due to unpaid gas bills while hydro facilities struggle with fluctuating water levels.

The consequences are already being felt by households and businesses grappling with longer outages and rising dependence on private generators. Manufacturers warn that unreliable power increases production costs and weakens Nigeria competitiveness in regional and global markets.

The Federal Government has acknowledged the challenges and says efforts are underway to stabilise supply through reforms in gas pricing transmission upgrades and new investment incentives. Officials also point to ongoing power sector recovery programmes aimed at clearing legacy debts and improving revenue collection.

Energy experts argue that lasting solutions require deeper structural changes including decentralised power generation stronger regulation and accelerated adoption of renewable energy sources. They say Nigeria cannot achieve its industrial ambitions without a resilient and diversified electricity system.

As demand continues to grow with population expansion and urbanisation the urgency of reform becomes clearer. Stakeholders agree that restoring power generation is not just an infrastructure issue but a national economic priority.

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