Energy Expert Olukayode Akinrolabu Cites Debt And Gas Shortages As Drivers Of Nigeria Power Crisis

Expert Olukayode Akinrolabu warns that gas shortages and trillions in unpaid debts are crippling Nigeria’s power sector and deterring vital private investment.

By: AXL Media

Published: Mar 24, 2026, 9:02 AM EDT

Source: The information in this article was sourced from Peoples Gazette

The Financial Stranglehold of Unpaid Energy Sector Debts

The persistent failure of Nigeria’s national grid is increasingly attributed to a massive financial deficit within the generation value chain. According to energy expert Olukayode Akinrolabu, the federal government currently owes gas suppliers more than N3.3 trillion, a debt burden that has effectively paralyzed the consistent delivery of fuel to thermal power plants. This fiscal constraint means that gas producers are no longer able to sustain the operational costs required to feed the nation's primary source of baseload power, leading to the widespread outages currently affecting households and industries.

Infrastructure Vulnerability and the Impact of Regional Vandalism

Physical security remains a secondary but equally devastating factor in the ongoing energy shortfall. Akinrolabu pointed to targeted vandalism of critical pipelines in Rivers State as a recurring disruptor that cripples the delivery channels necessary for power station functionality. While the nation’s installed capacity remains technically capable of higher output, these disruptions ensure that thermal plants operate far below their optimal levels. This physical insecurity, combined with aging grid components, creates a volatile environment where even minor technical failures can lead to systemic collapses.

Quantifying the Widening Deficit in National Power Generation

Current data suggests a stark reality for the Nigerian energy landscape, with electricity generation hovering at approximately 2,669 megawatts. This figure represents barely half of the 5,000 megawatt average required to maintain a semblance of stability across the national grid. The resulting shortfall has forced an over reliance on hydroelectric sources, which are inherently limited by seasonal water fluctuations and cannot compensate for the idle gas fired plants. This deficit is not merely a technical glitch but a structural failure that leaves millions of citizens in prolonged darkness.