National electricity generation in Nigeria has fallen to about 4,300 megawatts, prompting the grid operator to cut allocations to distributors and implement load shedding to keep the system stable, Reuters reported.

Thermal power plants need roughly 1,630 million standard cubic feet (mmscf) of gas per day, but actual supply as of February 23 was only around 692 mmscf — about 43 percent of what is required, according to the Nigerian Independent System Operator (NISO).

“The shortfall has constrained national output and reduced the amount of power allocated to distribution companies,” NISO said in a statement. It added that when system generation falls sharply, available energy must be distributed according to regulated allocation percentages to maintain grid stability.

Rising debt from government subsidies is linked to the fuel shortages. Operators report that sector debt has climbed to 6 trillion naira (4.4 billion US dollars) this month, undermining investment and exacerbating already severe outages.

Last year, the government approved a phased plan to refinance 4 trillion naira in electricity sector debt, mostly owed to 27 power generation companies for unpaid invoices from 2015 to 2023, aiming to stabilise the struggling industry. In January, authorities issued the first tranche of a 501 billion naira bond intended to restore liquidity. Operators say this measure has been insufficient, given that total debt has risen further.

Even wealthier consumers who recently faced higher tariffs based on their consumption and ability to pay — roughly 15 percent of the customer base — are now experiencing erratic electricity, leading some to consider abandoning the grid, Reuters reported.

The ongoing shortage has left gas-fired power plants receiving less than half of the fuel they require, intensifying electricity supply challenges across Africa’s most populous nation.