Power generation companies (GenCos) in Nigeria have raised concerns over the imminent shutdown of electricity plants nationwide due to a massive N4 trillion debt owed by the Nigerian government. In a statement issued on Monday by Colonel Sani Bello, the Chairman of the Board of Trustees of the Association of Power Generation Companies (APGC), the GenCos revealed they are currently owed N2 trillion for electricity supplied in 2024, in addition to N1.9 trillion in legacy debts.
“The collection rate for 2024 has fallen below 30%, and 2025 does not show any improvement, putting GenCos in a precarious financial position and making it difficult for them to meet their obligations,” the statement read.
The GenCos also cited other challenges including high corporate taxes, regulatory fees, and fluctuations in foreign exchange rates, all of which have further strained their financial capacity. Despite supplying electricity in full, the companies stressed that they are not receiving adequate payments, even with the Partial Activation of Contracts in the Nigerian Electricity Supply Industry (NESI) since July 2022.
The GenCos have called on the Nigerian government to take urgent measures to prevent a total shutdown, which could lead to a national security crisis. They pointed out that the N900 billion allocated for the power sector in the 2025 budget is far from enough to cover existing debts and future obligations.
“The financial flow within the power sector remains a key issue, hindering Nigerians from accessing reliable electricity,” the statement emphasized. To avert a complete collapse of power generation, the GenCos urged the government to implement a structured payment plan, which could include cash settlements, financial instruments, or debt swaps.
Source : https://saharareporters.com/
