Nigeria power sector faces expansion goals amid ₦2 trillion debt crisis

Nigeria’s power sector faces a dual reality of planned expansion and immediate financial instability. The Federal Government has outlined a multi-phase plan to increase electricity generation capacity, driven by a 2019 agreement with Siemens. This project aims to grow the current 3,400 MW of reliable supply to 7,000 MW by 2021, with further increases targeted for 2023 and subsequent phases.

However, the Minister of Power, Adebayo Adelabu, has warned that the sector is on the verge of systemic collapse due to mounting debts. Legacy liabilities across generation companies (GENCOs), the Transmission Company of Nigeria (TCN), and distribution companies (DISCOs) are estimated to exceed ₦2 trillion. These unpaid obligations, including fuel costs and transmission fees, are reportedly stifling investment and undermining the stability of the national grid.