The Senate Committee on Power has raised the alarm over a deepening liquidity crisis in Nigeria’s power sector, revealing that the federal government owes electricity generating companies approximately ₦200 billion every month in unpaid tariff shortfalls.
Speaking at a power sector retreat organized by the Nigerian Electricity Regulatory Commission (NERC) in Ikot-Ekpene, Akwa Ibom State, Chairman of the Committee, Senator Enyinnaya Abaribe, disclosed that no payments have been made to power producers since the beginning of the year. This non-payment has accumulated to ₦800 billion, pushing the nation further into energy sector debt.
“The government has not paid a single naira to electricity generating companies this year,” Abaribe told journalists. “This brings the total unpaid debt in 2025 alone to ₦800 billion, not to mention the already outstanding liabilities estimated to exceed ₦3 trillion.”
The retreat, attended by key stakeholders in the electricity industry, was convened to address the systemic and regulatory challenges confronting the Nigerian power sector. Abaribe stressed that until the liquidity gap is addressed, any attempt at reform or sustainability would be futile.
The senator called for urgent fiscal intervention and transparency in tariff recovery mechanisms to prevent a total collapse of the power supply chain.
