FG Reduces Power Supply to Niger by 42% to 46mw Amid N4 Trillion Debts to GenCos

FG Reduces Power Supply to Niger by 42% to 46mw Amid N4 Trillion Debts to GenCos

  • The Nigerian government has slashed the power supply to Niger by 42% to 46mw from 80mw
  • The move is part of sanctions by ECOWAS against the junta-led government for ousting Mohammed Bazoun, the country’s civilian president
  • Niger’s energy minister confirmed that Nigeria restored electricity to the country but supplies 46mw, leading to load shedding and rationing

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Nigeria has slashed electricity supply to Niger Republic to 46mw from 80mw.

The reduction represents 42% of the power supply to the junta-ruled West African country.

Nigeria slashed power to Niger as punishment for coup
Nigeria explains reason for reducing power supply to Niger amid debt to GenCos. Credit: Bloomberg/Contributor
Source: Getty Images

Nigeria reduces power supply to Niger

The country’s energy minister, Haoua Amdadou, disclosed that the development has led to the country’s power production dropping by 30 to 50%, forcing Nigelec, the state-owned power company, to begin load shedding that could last several days.

Nigeria slashed much of its electricity supply to Niger as part of a regional punishment against the military coup that ousted civilian president, Mohammed Bazoun last year.

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Amodou confirmed that Nigeria had since resumed electricity supply to the country. He, however, said it only provides 46mw instead of the 80mw.

Nigeria sanctions Niger for coup

The power reductions came as Nigeria faces low power generation and supply caused by low gas supply and low infrastructure investment.

Nigeria currently generates 5,000 megawatts for its over 200 million people.

Estimates put Nigeria’s electricity needs at 30,000 megawatts.

Vanguard reports that Nigeria generates electricity from thermal and hydroelectric power sources, with natural gas as the dominant fuel for its over 29 thermal plants.

GenCos threaten to shut down plants over debt

Legit.ng earlier reported that on Monday, April 14, 2025, generating firms threatened to shut power plants over N4 trillion debt.

The GenCos warned they could no longer guarantee a steady supply of electricity as outstanding debts now stand at more than N4 trillion, including N2 trillion for the 2024 power supply and N1.9 trillion in legacy debts. 

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Nigeria primarily generates electricity from thermal and hydroelectric sources, with natural gas being the dominant fuel for its over 29 thermal plants.

According to GenCos, the debt burden and operational constraints could force a shutdown of power plants if steps are not taken.

They also said the Nigerian government pays GenCos less than 30% of the monthly invoices for power supplied to the national grid.

FG moves to intervene

They warned that the debt could cause the power sector to collapse, accusing the Nigerian Bulk Electricity Trading Pls and other regulators of neglecting them in the NESI’s waterfall arrangement.

FG steps in as GenCos move to shutdown plants
FG reacts as GenCos decry N4 trillion electricity debt. Credit: Novatis/Contributor
Source: UGC

However, the Minister of Power, Adebayo Adelabu, promised to tackle the debt.

Bolaji Tunji, an aide to Adebayo, said that the government was aware of the debt and would address it via the Ministry of Finance.

FG orders a reduction in electricity supply to 3 African countries

Legit.ng previously reported that the Nigerian Electricity Regulatory Commission (NERC) is set to enhance power supply to domestic consumers following its orders directing the System Operator (SO) to cap supplies to international customers by 6 per cent of domestic supplies.

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The affected countries include Togo, Benin Republic and the Niger Republic.

The development comes amid a high level of indebtedness and non-remittance of electricity bills supplied to the countries over the years.

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Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng