Nigeria’s 23 power generation companies (GenCos) have raised an urgent alarm over the potential collapse of the country’s electricity supply system, citing over ₦4 trillion in unpaid debts.
In a statement released on Monday, the companies, under the Association of Power Generation Companies (APGC), warned that the worsening liquidity crisis in the electricity market could result in the shutdown of power plants nationwide. The statement was signed by the association’s Board of Trustees Chairman, Col. Sani Bello (retd.).
According to the GenCos, the continued non-payment for electricity generated and consumed on the national grid has significantly crippled their operations. The companies accused the Nigerian Bulk Electricity Trading Plc (NBET) and other market stakeholders of sidelining GenCos in the NESI waterfall payment arrangement, which disproportionately favors other service providers.
“While other providers receive 100% of their market invoices, GenCos receive just 9% to 11%,” the statement noted.
The group emphasized that the electricity sector’s financial instability has severely limited their ability to operate efficiently and fulfill their contractual obligations, potentially putting national security at risk.
The statement reads in part:
“The crises from cash liquidity have reduced GenCos’ ability to continue to perform their obligations, thereby threatening to completely undermine the Electricity value chain.”
In February, Minister of Power, Adebayo Adelabu, revealed that the Federal Government owes ₦4 trillion in electricity subsidies — ₦2 trillion as legacy debt to GenCos, ₦1.9 trillion as 2024 subsidy, and ₦450 billion owed to DisCos.
The GenCos have now called on the Federal Government to act immediately, warning that delays could plunge the nation into widespread power outages and economic disruption
