Electricity Generation: Nigeria's Grid Hit by Gas Shortage
The Nigerian Independent System Operator (NISO) has confirmed a continued decline in electricity generation on the national grid, primarily stemming from persistent gas supply constraints impacting several thermal power plants across Nigeria as of Thursday, March 5, 2026.
Nigeria's national grid has been experiencing low generation levels for some time due to a significant drop in gas supply. This issue is particularly critical as it coincides with the dry season, a period when water levels in hydro power plants are naturally low, further exacerbating the power generation deficit.
Underlying Causes and Financial Woes
The Association of Power Generation Companies (APGC) attributes the gas shortage to the inability of electricity generation companies to meet their gas payment obligations. The APGC blames the federal government, stating that only 35 per cent of their invoices from subsidy payment, which has now accrued to over N6 trillion, is being settled.
Despite the prevailing gas crisis, a Daily Trust report indicates that the country’s five hydro plants are currently contributing a substantial 45 per cent of the total power generation, providing a crucial, albeit insufficient, backbone during this challenging period.
Current Generation Figures and Deficit
NISO’s statement on Thursday, March 5, 2026, revealed that total generation on the national grid stood at 3,940.53 MW at 05:00 hours. This figure is significantly below the expected capacity, primarily due to the existing gas supply limitations affecting numerous generating stations.
Between 06:00 hours and 08:00 hours on the same day, several generating units were forced to shut down. This was a direct consequence of inadequate gas supply to the plants, resulting in a cumulative reduction of approximately 292 MW in available generation on the grid during that specific timeframe.
Operational Challenges and Future Outlook
Operational data from March 4, 2026, highlights the scale of the problem: thermal power plants require approximately 1,588.61 million standard cubic feet (MMSCF) of gas per day to operate at optimal capacity. However, the actual gas supply to these stations was a mere 652.92 MMSCF, representing only about 40 per cent of the gas needed for optimal generation.
These developments have further diminished the total generation available for dispatch to the national grid, contributing significantly to the current generation inadequacy experienced across the system. NISO is actively collaborating with the affected Generation Companies (GenCos) and relevant gas suppliers to closely monitor the situation. Their aim is to facilitate the restoration of generation as soon as gas supply to the affected plants stabilises. The System Operator remains committed to taking necessary operational measures to maintain grid stability and will continue to keep stakeholders and the public informed of developments affecting the national grid.