Nigeria’s electricity generation companies (Gencos) have raised alarm over an unpaid debt of N5.2 trillion, warning that the nation’s power supply is at risk if the Federal Government does not act fast.
In a statement on Monday, Dr. Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, said the Gencos have remained patriotic by generating electricity despite years of unpaid invoices, but can no longer sustain operations under mounting debts.
Debt Breakdown
According to Ogaji, the N5.2 trillion debt includes N2 trillion for 2024, N1.9 trillion in legacy debts from 2015, and an additional N1.2 trillion for the first half of 2025.
She said the Gencos submit monthly invoices averaging N250 billion, but there is no workable repayment plan in place, and only N900 billion was budgeted for 2025, which is not yet cash-backed.
Minister Responds
Minister of Power, Adebayo Adelabu, through his spokesperson, Bolaji Tunji, confirmed that the government is concerned about the debt and is working on plans to offset part of it.
Tunji said efforts are ongoing, though no clear timeline was provided.
Industry at Risk
Ogaji warned that unless urgent action is taken, the situation could lead to machine breakdowns, reduced capacity, and eventual collapse of power generation. She also cautioned against proposed reductions in electricity tariffs, saying such decisions rely on questionable subsidy assumptions and could worsen the sector’s liquidity crisis.
