Abuja, April 14, 2025 – Naija247news – Nigeria’s Power Generation Companies (GenCos) have issued a dire warning that the nation’s electricity supply could face an imminent collapse unless the Federal Government urgently intervenes to settle a staggering N4 trillion debt owed for electricity already generated and supplied to the national grid.
Thank you for reading this post, don't forget to subscribe!In a strongly-worded statement issued Monday in Abuja, Col. Sani Bello (rtd), Chairman of the Board of Trustees of the Association of Power Generation Companies (APGC), said GenCos are reeling under intense financial pressure, with N2 trillion owed for power supplied in 2024 alone, and another N1.9 trillion in legacy debt, all without any credible financing or securitisation plan from the government.
“GenCos are currently being owed about N4 trillion—N2 trillion for 2024 invoices and N1.9 trillion in legacy debt. Yet there’s no bankable plan in sight. This is now threatening our ability to continue operations,” Bello stated.
23 power-generating plants are currently connected to the national grid, but Bello warned that cash flow shortages, coupled with mounting regulatory constraints, could grind operations to a halt if no emergency financial lifeline is extended.
He lamented that the GenCos have remained patriotic, injecting massive investments and expanding generation capacity since the power sector’s 2013 privatisation—despite hostile operating conditions, including lack of foreign exchange access, rising inflation, and investor-unfriendly policies.
“It’s no longer news that GenCos have borne the brunt of the liquidity crisis plaguing the Nigerian Electricity Supply Industry (NESI). Despite systemic constraints and suffocating policies, we’ve kept faith with our contractual obligations for over 10 years,” he added.
Bello noted that hopes of resolving the crisis through external funding sources under the Power Sector Recovery Programme (PSRP) have been dashed due to the failure of other market participants to meet critical Distribution Linked Indicators (DLIs).
He further decried the lack of stable foreign exchange access, highlighting that most operational and maintenance requirements in the generation sector are dollar-denominated.
“GenCos urgently require a specialised FX window or stable dollar allocation. Without this, sustaining operations is near impossible,” he warned.
The APGC boss called for a coordinated, investor-friendly policy overhaul, urging the liberalisation of the market through bilateral contracts and enforcement of market rules to rebuild investor confidence and ensure sector viability.
“We are demanding immediate action to prevent total collapse of generation. Investors need growth-driven regulations, proper market enforcement, and a functional power sector to ensure Nigerians get the reliable electricity they deserve,” Bello concluded.
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