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Economy

Gas Shortage Worsens Nigeria Power Outages

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Gas

Nigeria power outages deepen as system operator blames inadequate gas supply to thermal plants for declining electricity generation nationwide

Nigeria’s lingering nationwide electricity disruptions are primarily caused by inadequate gas supply to thermal power plants, the Nigerian Independent System Operator announced on Friday, confirming that persistent Nigeria power outages stem from severe fuel constraints affecting generation on the national grid.

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Also read: EEDC Attributes Southeast Power Drop to Gas Shortage

In a statement titled Declining Power Output Attributable to Generation Shortfalls and Gas Supply Limitations, released via its official communication channels, the system operator disclosed that average available electricity generation has dropped to about 4,300 megawatts, significantly below the country’s installed capacity.

The operator explained that the outages began in early February following scheduled maintenance works on critical gas infrastructure undertaken by the Nigerian National Petroleum Company Limited and Seplat Energy, which temporarily disrupted gas deliveries to several thermal generating stations.

Although the maintenance exercise has ended, gas supply limitations have persisted, prolonging the power shortfall across the country.

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According to the statement signed by NISO management, thermal power plants, which constitute the backbone of Nigeria’s electricity supply, are currently operating far below optimal levels due to fuel shortages.

The agency revealed that thermal plants collectively require approximately 1,629.75 million standard cubic feet of gas daily to function efficiently.

However, actual supply as of February 23, 2026 stood at about 692 million standard cubic feet per day, representing less than 43 per cent of required volume.

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Officials described the deficit as severe, noting that reduced gas availability has directly weakened electricity generation and energy allocation to Distribution Companies nationwide.

The shortfall has compelled grid managers to implement load shedding measures to stabilise the system and prevent widespread disturbances.

NISO explained that when total generation falls sharply, controlled rationing becomes necessary to maintain grid stability while electricity is distributed according to allocation percentages approved by the Nigerian Electricity Regulatory Commission.

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The operator expressed regret over the continued inconvenience faced by households and businesses but assured that engagements with industry stakeholders are ongoing to restore supply levels once gas availability improves.

Nigeria’s electricity sector remains heavily dependent on gas-fired thermal plants, which account for more than 70 per cent of grid generation, leaving supply highly vulnerable to disruptions in gas production, infrastructure maintenance, pricing disputes and payment challenges within the power value chain.

Industry experts note that longstanding liquidity constraints, foreign exchange pressures and debts owed by generating companies to gas suppliers have continued to complicate fuel supply arrangements.

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Despite recent structural reforms separating the system operator from the Transmission Company of Nigeria to strengthen transparency and grid management, electricity output remains closely tied to consistent fuel availability.

With national peak electricity demand estimated to exceed 20,000 megawatts, the current average generation level highlights a critical and widening energy gap confronting Africa’s most populous nation.

Also read: PENGASSAN President Criticises Oil Revenue Executive Order

Until gas deliveries improve and generating capacity rebounds, electricity consumers nationwide are expected to continue experiencing outages and supply rationing.

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Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

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NRS

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

Also read: Wike Celebrates Fintiri at 59, Hails Him as Loyal Friend

The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

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Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

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He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

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The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.

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Also read: Wike Celebrates Fintiri at 59, Hails Him as Loyal Friend

The NRS urged taxpayers to rely on the provisions of the law and official explanations when assessing their obligations under the new framework.

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