Nigeria’s national electricity grid is facing a fresh liquidity crisis as wealthy households and manufacturers abandon public supply for solar and self-generation.
Government liabilities to power generation companies (GenCos) have climbed to ₦5.6 trillion and could hit ₦6.2 trillion by December 2025. Only 13% of commercial customers still rely on the grid, down from 20%, while manufacturers spent about ₦1 trillion on private power in 2024 alone.
The shift has left the government with a ₦200 billion monthly tariff shortfall, as electricity subsidies fail to keep pace with rising arrears. Analysts warn that without urgent reforms and a credible debt repayment plan, the grid could be left serving mainly low-income households, with an additional ₦1 trillion yearly needed to prevent collapse.


