Nigeria’s power crisis has deepened as several power generation companies (GenCos) suspend operations due to a mounting debt burden estimated at N6.8 trillion.

A report by Bloomberg revealed that 16 out of the country’s 33 power plants were not generating electricity as of Tuesday, citing data from the Nigeria Independent System Operator.

The affected plants are struggling to sustain operations due to their inability to maintain critical equipment, secure gas supplies, and cover basic operational costs.

Speaking on the development, Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, said the liquidity crisis in the generation sub-sector reflects broader challenges within Nigeria’s electricity industry.

She warned that without adequate financial support, the sector may no longer be able to deliver reliable electricity to Nigerians.

“We cannot maintain the machines,” Ogaji stated, emphasizing that insufficient funding has made it impossible to service essential infrastructure, highlighting the severity of the ongoing cash flow crisis.

She added, “Money for hand, light for house, gas for pipe. This is more than an industry issue; it is an economic imperative.

“Reliable power is the backbone of industrialization, job creation, and national development. The time to act is now.”

Industry stakeholders have also raised concerns over outstanding debts totaling about N3.3 trillion owed to GenCos and gas suppliers, warning that the situation could further disrupt electricity supply if not urgently addressed.