Power Generation Companies have threaten a total shutdown of electricity generation in Nigeria following unpaid debts from the federal government and other market operators.which as surged to over N4 trillion.
The Chairman of the Board of Trustees of the GenCos, Rtd. Colonel Sani Bello who made the threats in Abuja on Monday said the debts have surges to over N4trillion.
GenCos lamented that the mounting liabilities were crippling their ability to operate.
“The power generated by GenCos has continued to be consumed in full without corresponding payment.
“This situation has dire consequences for the GenCos and, by extension, the entire power value chain,” he said.
Of the N4tn owed, N2tn is for electricity generated in 2024, while N1.9tn represents legacy debts.
GenCos noted that the 2025 national budget’s N900 billion allocation for the power sector is grossly inadequate to address those arrears and sustain future payments.
Bello described the situation as “a clear departure from existing terms of the Power Purchase Agreement,” adding that under current conditions, GenCos only receive about 9–11 ppercent of their invoices, while regulatory bodies and other service providers are paid in full.
The GenCos also highlight the sharp decline in collection rates— below 30 percent in 2024— which they say has worsened the liquidity crisis.
“The crises from cash liquidity are on the top burner and have reduced GenCos’ ability to continue to perform their obligations,” he said.
Further compounding the issue are operational costs denominated in U.S. dollars and limited access to forex.
“The importance of a specialised window or stable dollar allocation option for the GenCos cannot be overemphasised,” Bello said.
GenCos added that they were demanding urgent government action, including full settlement of outstanding invoices, rreprioritizationof the waterfall payment structure, and guarantees backed by institutions like the World Bank and AfDB.
“There is a need for a coordinated approach by all stakeholders to address the liquidity issue realistically and sustainably. This request requires urgent attention,” he added.
