Nigeria has reduced its electricity export to Niger Republic from 80 megawatts to 46 megawatts, marking a 42 percent cut in power supply to the neighbouring country. The decision has been attributed to both internal challenges in Nigeria’s power sector and ongoing regional tensions following the military takeover in Niger in July 2023.
Niger’s Energy Minister, Haoua Amadou, confirmed that the reduced electricity supply from Nigeria has caused the country’s overall power production to fall by between 30 to 50 percent. This decline has led the state-owned power company, Nigelec, to impose prolonged and scheduled blackouts, particularly in the capital, Niamey. Although Nigeria resumed partial electricity delivery to Niger after an initial suspension triggered by regional sanctions against the military junta, the supply remains significantly below previous levels.
Back home, Nigeria is grappling with a deepening power crisis, generating slightly over 5,000 megawatts for a population exceeding 200 million. Industry experts estimate the country needs a minimum of 30,000 megawatts to meet domestic demand. Most of Nigeria’s electricity comes from thermal and hydroelectric sources, with over 29 thermal plants heavily reliant on natural gas. However, persistent low gas supply and inadequate infrastructure investment continue to hamper output.
Compounding the crisis, power generation companies in Nigeria, under the Association of Power Generation Companies, have issued a stark warning about a potential national blackout. The GenCos cite unpaid debts exceeding N4 trillion as a primary concern—N2 trillion owed for power supplied in 2024, and another N1.9 trillion in legacy debt. According to a statement signed by the association’s Board of Trustees Chairman, Col. Sani Bello (retd.), some plants are receiving less than 30 percent of the monthly payments due for electricity supplied to the national grid.
The GenCos accused the Nigerian Bulk Electricity Trading Plc and other stakeholders of sidelining them in the application of the electricity market’s “waterfall arrangement”, which reportedly allocates 100 percent payment to some service providers while GenCos receive as little as 9 to 11 percent of their invoices. The companies warned that this financial imbalance, if not urgently addressed, could force them to shut down operations.
Nigeria’s Minister of Power, Adebayo Adelabu, has acknowledged the crisis. His special adviser, Bolaji Tunji, confirmed that the government is taking steps to resolve the issue. He added that the Ministry of Finance is expected to take over the responsibility for clearing the outstanding debts soon, as part of broader efforts to stabilise the power sector.