GenCos shut down as Nigeria’s power crisis deepens

Nigeria’s power generation companies (GenCos) are warning that many of them are shutting down due to a huge debt of about ₦6.8 trillion.

The Association of Power Generation Companies (APGC) said the situation is making it difficult for GenCos to maintain their equipment, buy gas, and cover basic running costs.

According to APGC’s CEO, Dr. Joy Ogaji, the unstable national grid is also damaging their operations. She explained that constant changes in electricity frequency, voltage, and output are putting serious pressure on power plants and their machines.

Recent data shows that in mid-March 2026, the national grid experienced large swings in power supply. Frequency and voltage levels moved outside normal ranges, while electricity generation rose and fell sharply within short periods. This instability is putting turbines and other equipment under stress.

Ogaji said these problems are not just technical—they are also causing financial losses. Power companies lose money whenever they are forced to frequently start and stop their plants. They also waste gas and spend more on maintenance.

She explained that power plants are designed to run under stable conditions. When this does not happen, efficiency drops. Gas-powered plants, which are common in Nigeria, are especially affected because they perform best when running steadily at full capacity.

Running below optimal levels can increase gas use by 15 to 20 percent, adding extra costs that are not covered under current payment systems.

Ogaji also warned that constant fluctuations can damage equipment over time, increase repair costs, and shorten the lifespan of machines.

She blamed the problem partly on poor grid management, saying the system operator has not been able to keep the grid stable within safe limits. As a result, power plants are being forced to operate beyond their designed capacity, worsening the crisis.