Nigeria electricity generation has continued to decline, raising fresh concerns about the country’s ability to maintain a reliable power supply as the dry season approaches. The latest figures reveal growing pressure on an electricity sector already struggling with unpaid debts, inadequate gas supply and operational difficulties. Consequently, households, manufacturers and other businesses could face further challenges as electricity demand and production costs continue to rise.
According to a report published by The Guardian on Monday, November 9, average electricity generation dropped from 3,849.60 megawatts (MW) in August to 3,549.02MW in November. This represents a decline of approximately 300MW within three months, highlighting the difficulties facing power producers across the country.
The development has renewed concerns about the sustainability of electricity supply, particularly as Nigeria enters a period when reduced water levels could affect hydroelectric power production. Meanwhile, financial disagreements among major industry operators continue to complicate efforts to improve generation.
Nigeria Electricity Generation Faces Dry-Season Pressure
The approaching dry season presents another challenge for Nigeria’s electricity sector because changes in water levels directly affect hydroelectric power stations. These facilities depend on sufficient water inflows to maintain production, meaning prolonged reductions could limit their contribution to the national grid.
During the rainy season, higher reservoir levels generally support hydroelectric generation, while cooler temperatures can reduce electricity demand. However, these conditions change during the dry season, when lower water inflows and increased demand could place additional pressure on available generation capacity.
Although Nigeria operates several electricity generation companies, their combined output has continued to fall below the country’s growing electricity needs. This situation leaves distribution companies with limited power to supply consumers, while households and businesses struggle with inconsistent electricity.
Financial difficulties have also weakened the sector’s ability to operate effectively. Generation companies require regular payments to maintain their facilities, purchase fuel and meet operational expenses. However, outstanding debts across the electricity market have continued to affect relationships between power producers, gas suppliers and other industry operators.
The Federal Government’s financial interventions have provided some support, but they have not completely resolved the sector’s liquidity problems. Without consistent payments, operators could struggle to maintain production levels and support improvements in electricity supply.
Unpaid Debts and Gas Supply Problems Deepen the Crisis
Gas supply remains another major concern because thermal power stations depend heavily on natural gas to generate electricity. When suppliers experience payment difficulties or disruptions in delivery, generating companies may struggle to operate at their expected capacity.
The disagreement between the Nigerian Independent System Operator (NISO) and the Nigerian National Petroleum Company Limited (NNPC) has further drawn attention to this challenge.
NISO identified inadequate gas supply to thermal power stations and reduced water inflows into hydroelectric reservoirs as major factors behind the decline in electricity generation. However, NNPC disputed suggestions that its gas transportation infrastructure was responsible for the supply difficulties.
The national oil company maintained that its gas transportation network remained available to support deliveries to power plants. The disagreement highlights the need for better coordination among operators and clearer information about the challenges affecting electricity production.
Meanwhile, electricity distribution companies also face difficulties meeting consumer expectations because the amount of power available for distribution remains limited. Even when generating companies produce electricity, distribution challenges can affect how much consumers eventually receive.
Manufacturers Spend More on Alternative Electricity
The declining electricity supply has serious implications for Nigeria’s manufacturing industry, where reliable power remains essential for production, storage and daily operations.
According to the report, manufacturers spent approximately ₦1.35 trillion on alternative electricity in 2025. This includes the cost of operating generators and other independent power sources to keep their businesses running.
The rising expenditure places additional pressure on manufacturers, particularly businesses already dealing with high production costs and difficult operating conditions. Companies that depend heavily on electricity may also increase the prices of their products to recover some of these expenses.
Small businesses face similar challenges because many cannot afford large generators or expensive alternative energy systems. Consequently, unreliable electricity can reduce working hours, disrupt services and limit business growth.
The situation also affects ordinary households, which often spend additional money on fuel and other alternatives whenever public electricity supply becomes unreliable.
As Nigeria approaches the dry season, the government and electricity industry operators face increasing pressure to address these challenges. Resolving outstanding debts, improving gas supply arrangements and strengthening power generation infrastructure will be essential to stabilising the sector.
Without practical solutions, the combination of declining generation, financial difficulties and rising demand could deepen Nigeria’s electricity crisis and place further pressure on households, businesses and the wider economy.