Nigeria power sector faces capacity gaps and debt

Nigeria continues to face a severe electricity crisis characterized by a fragile national grid and a significant gap between installed capacity and actual supply. According to Nigerian Electricity Regulatory Commission (NERC) data from April 2026, the installed grid-connected capacity stood at 13,625MW, while the average available capacity was only 4,286MW.

The sector is also burdened by a debt backlog of approximately N3.3 trillion, with only 27% of Generation Companies' (GenCos) invoices being paid. This financial strain impacts gas supply, generation, and maintenance across the value chain.

Following his first 100 days in office, Minister of Power Joseph Tegbe faces the challenge of managing a structurally weak sector inherited from previous administrations. While the system remains deeply broken, recent data suggests shifts in generation and transmission levels compared to earlier periods in the year.