Nigeria Slashes Electricity Supply To Niger Republic Amid Domestic Power Crisis, Mounting GenCos Debt

Nigeria has reportedly reduced its electricity supply to the junta-led Niger Republic from 80 megawatts to 46 megawatts; a 42% cut. 

Niger’s Energy Minister, Haoua Amadou, confirmed the development, stating that the reduction has caused a 30% to 50% drop in electricity production across the country. 

The resulting shortfall has forced Nigelec, the state-owned power firm, to implement rolling blackouts lasting several days, particularly in the capital, Niamey.

The electricity cutback is tied to regional sanctions imposed on Niger following the military coup that ousted President Mohamed Bazoum in July 2023. 

While Nigeria had initially halted all electricity exports, partial supply resumed with a significantly reduced output of 46 megawatts.

Back home, Nigeria faces its own deepening power crisis. The country currently generates slightly over 5,000 megawatts for a population exceeding 200 million; far below the estimated 30,000 megawatts required for sufficiency. 

The nation’s power generation largely depends on natural gas-fueled thermal plants and a few hydroelectric sources.

Meanwhile, Nigeria’s power generation companies (GenCos) are sounding the alarm over a severe financial crisis, citing over ₦4 trillion in unpaid debts. Of this, ₦2 trillion accounts for power generated in 2024, while ₦1.9 trillion is legacy debt. 

The GenCos, operating under the Association of Power Generation Companies, warned of a potential shutdown if the situation isn’t urgently addressed.

In a strongly worded statement signed by the association’s Chairman, Col. Sani Bello (retd.), the companies revealed they are receiving less than 30% of their monthly invoices for electricity supplied to the national grid. 

Some plants are paid as little as 9% to 11% of what they are owed, due to the controversial “waterfall arrangement” within the Nigerian Electricity Supply Industry (NESI), which prioritizes other service providers.

The statement, titled ‘Over ₦4tn Unpaid Invoices Threaten GenCos’ Imminent Shutdown’, called on the Federal Government to urgently intervene.

Minister of Power, Adebayo Adelabu, has pledged to tackle the growing debt crisis. 

His special adviser, Bolaji Tunji, stated that the Ministry of Finance will soon take over payments to GenCos as part of broader efforts to stabilize the electricity sector.