FG’s N4tr Energy Debt Crisis: Nigeria Slashes Power Supply to Niger by 42%, Drops to 46MW, Says Energy Minister

The New Diplomat
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By Abiola Olawale

Niger’s Energy Minister Haoua Amadou has revealed that Nigeria has allegedly reduced its electricity supply to the country by 42%, bringing the output down to just 46 megawatts (MW).

The Minister announced that the situation had led the country’s electricity production to fall by 30 to 50 per cent and forced state-owned power company Nigelec to impose planned power cuts that can last several days, especially in Niamey.

Recall that Nigeria had initially cut power supply to Niger as part of regional sanctions against the junta that toppled civilian president Mohamed Bazoum in July 2023.

However, after several weeks, Nigeria resumed delivering electricity to the country.

Giving updates, Amadou said since Nigeria resumed delivering electricity, “only 46 megawatts was provided instead of the usual 80 megawatts.”

While the official reasons for this are sketchy, it comes at a time when Nigeria itself is battling with low power supply across the country.

The country currently generates a little above 5000mw, barely enough for its over 200 million populace, according to several energy experts.

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

On Monday, power generation companies, popularly known as GenCos had threatened to shut down over N4tn legacy debt.

The power generation companies warned that they could no longer guarantee a steady electricity supply due to the worsening liquidity crisis in the electricity market, with outstanding debts now exceeding N4tn, comprising N2tn for power supply in 2024 and N1.9tn in legacy debts.

The firms, under the aegis of the Association of Power Generation Companies, raised the alarm in a statement issued and signed by the Chairman of the Board of Trustees, Col. Sani Bello (retd.).

They said the debt burden and operational constraints currently facing the companies could force an imminent shutdown of power plants if urgent interventions were not implemented.

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