Nigeria’s power generation companies (GenCos) have warned of an imminent industry collapse due to a N4 trillion debt owed by the federal government.
The alarm was raised by the Association of Power Generation Companies (APGC), which noted the debt includes N2 trillion for power supplied in 2024 and N1.9 trillion in legacy arrears.
APGC Chairman, Col. Sani Bello (rtd), said GenCos now receive less than 30% of their monthly invoices, threatening their ability to sustain operations. “Despite fulfilling contractual obligations and investing in capacity, GenCos are being strangled by unpaid dues, poor regulations, and currency volatility,” Bello said.
He added that the power industry’s liquidity crisis could spark national security concerns if not urgently addressed. The firms called for a transparent repayment plan, lamenting the 2025 federal budget allocates only N900 billion for power—far below what’s needed.
GenCos also highlighted regulatory bottlenecks, inflation, and lack of firm contracts as major hurdles. Without immediate intervention, the companies warned of a full shutdown that could paralyze electricity supply nationwide.
