Power generation companies, GenCos, on Monday warned that power plants across the country were facing imminent shutdown due to a huge N4 trillion debt owed by the Federal Government.

In a statement issued by the Board of Trustee Chairman of the Association Power Generation Companies, APGC, Col. Sani Bello, Gencos said they were currently owed N2 trillion for power supplied in 2024 and N1.9 trillion in legacy debts.


The companies noted that plants were being paid less than 30 per cent of monthly invoices for power supplied to the national grid.


The companies stated: “It is no more news that the power generation companies have continued to bear the brunt of the liquidity crisis in the Nigerian Electric Supply Industry (NESI).


“GenCos, on their part as responsible investors with patriotic zeal, have made large-scale investments and have continued to demonstrate absolute commitment by ramping capacities in line with their contract these over (10) years, amid system constraints, policies & regulations that are not investors friendly, increasing debts owed by the FGN without a clear financing plan, lack of firm contracts and a market without securitisation but based on best endeavours, thereby hampering future planning.



“Notwithstanding this and other severe difficulties the GenCos have battled with since takeover in 2013, they have kept to the terms of their contractual agreements by ramping up capacity, which has been largely constrained systemically.


“Against the backdrop of the many challenges facing the power sector in Nigeria, the crises from cash liquidity are on the top burner and have reduced GenCos ability to continue to perform their obligations, thereby threatening to undermine the Electricity value chain completely.


“The GenCos expectations of being settled through external support such as the World Bank PSRO has also been dampened due to other market participants’ inability to meet their respective distribution linked indicators (DLIs), enshrined in the Power Sector Recovery Program (PSRP)”.

The GenCos added, ” In light of the severity of the issues highlighted above, the GenCos are requesting that immediate and expedited action be taken to prevent national security challenges that may result from the failure of the GenCos to sustain steady generation of electricity for Nigerians.

“The 2024 collection rate has dropped below 30%, and 2025 is not any better, severely affecting GenCos’ ability to meet financial obligations. Tax and Regulatory Challenges: High corporate income tax, concession fees, royalty charges, and new FRC compliance obligations are further straining GenCos’ revenue. GenCos are currently owed about N4 trillion (N2 trillion for 2024 and N1.9 trillion in legacy debts). No possible solutions, including cash payments, financial instruments, and debt swaps, are in sight.


“The 2025 government budget allocates only N900 billion, raising concerns about its adequacy to cover arrears and future payments. The power generated by GenCos have continued to be consumed in full without corresponding full payment, notwithstanding the commencement of the Partial Activation of Contracts in the NESI which took effect from July 1, 2022, the minimum remittance order, bilateral market declaration, waterfall arrangement, the risks of inflation, forex volatility with no dedicated window to cushion the effect of the forex impact, the supplementary MYTO order which leaves about 90% of GenCos monthly invoices unmet without a bankable securitisation, or financing plan. This situation has dire consequences for the GenCos and by extension the entire power value chain”.

The companies that called for the implementation of payment plans to settle all outstanding GenCos invoices observed that “the flow of money within the power industry is one of the fundamental problems preventing Nigerians from enjoying continued and sustainable improvement in electricity supply”.

Vanguard News

https://www.vanguardngr.com/2025/04/electricity-gencos-warn-of-imminent-shutdown-over-n4trn-debt-2/

And government no go pay.

Our gencos have been nice to us . They give us electricity on top of such debt from government

No payment, no money for improvements, no money for gas, no 24 hour light.

Light de self?

Wahala no dey finish for this country

End this national grid madness and have all states generate their own power.

That will save this country a lot of headache.

APC is a failure for real.

Solar is Nigeria's Liberation

They would soon push everyone to band A so they can get their 4 trillion since they cannot directly tackle FG

It's heart wrenching being a nigerian..

Since i was born till this moment we've never had it good with electricity..

Isn't Nigeria cursed?

4 wetin ...trillion?

After all this high tariff

Let me sound selfish abeg, we've not had light since last year in Isokan area of Ayobo, so they can go ahead biko

Useless government. I no too dey see light self but this people dey try on top that heavy debt owe by govt.

My people see even they shut down it not my buzz here for d new location I dey they have power for 3hrs a day (24hrs)
Never seen dis kind of thing before for my life
And d people living here are just used to it
Useless NEPA

I wonder why Solar panels and batteries or solar accessories are not given tariff holidays .

That's what can benefit the people directly, and not just giving vague tariff agreements with an entrepreneur so he can fix roads .

RevenuesBoost:
Solar is Nigeria's Liberation

For individual houses solar may work

But for mega estates and cities? Probably not.

To generate one thousand megawatt of power you need a solar grid that would cover a large piece of land. You can build a gas station that would supply 5000 mw on a smaller area of land

Who care! I have been generating power for myself over 2weeks now. It makes no absolute sense......

nairalanda1:


For individual houses solar may work

But for mega estates and cities? Probably not.

To generate one thousand megawatt of power you need a solar grid that would cover a large piece of land. You can build a gas station that would supply 5000 mw on a smaller area of land

We just like to deceive ourselves. Many Nigerians cannot afford stable power supply. Hence, people are bypassing their metres and companies that supply power are running into debt.

Power isn't cheap. In countries where power is massively subsidized, their population isn't as big as ours. This country needs population control, else people will keep committing suicide due to economic hardship.

nairalanda1:


For individual houses solar may work

But for mega estates and cities? Probably not.

To generate one thousand megawatt of power you need a solar grid that would cover a large piece of land. You can build a gas station that would supply 5000 mw on a smaller area of land

Nigeria won't ever consider generating for the whole country.

Solar is free, you just need the sun and a solar generator/(s).

Who fokn cares? As long as it doesn't affect the price of olosho

ImpartialGuy:


We just like to deceive ourselves. Many Nigerians cannot afford stable power supply. Hence, people are bypassing their metres and companies that supply power are running into debt.

Power isn't cheap. In countries where power is massively subsidized, their population isn't as big as ours. This country needs population control, else people will keep committing suicide due to economic hardship.

True except for.population control. We need to utilize our large population to our advantage.

Population control will make your country end up like Japan and south Korea. Aging population, not enough young people to pay the tax needed for pensions. Growing debt.

Dem get billions to renovate VP's house, but can't pay electricity debt.
🫡🫡

Oyibo dey call am ZOO

ImpartialGuy:


We just like to deceive ourselves. Many Nigerians cannot afford stable power supply. Hence, people are bypassing their metres and companies that supply power are running into debt.

Power isn't cheap. In countries where power is massively subsidized, their population isn't as big as ours. This country needs population control, else people will keep committing suicide due to economic hardship.

Not all of us are illiterates.....
What machine do they use in measuring the power generated and supplied that the FG is indebted to them for?


Is it not the same way those at the transmission side go about bringing up estimated bills to consumers for what was not. seen and used ?

Abeg we are not kids . Na the usual story when they want to increase tariffs . Werey people ! Increase as you want jare. Nigerians will not do anything . Suffering is normalized here

nairalanda1:


For individual houses solar may work

But for mega estates and cities? Probably not.

To generate one thousand megawatt of power you need a solar grid that would cover a large piece of land. You can build a gas station that would supply 5000 mw on a smaller area of land

Land is not an issue in Nigeria. There are vast areas particularly in the far north that are not arable due to desertification.

All.you need to generate 1 megawatt is 5 acres. To reproduce the entire current capacity of all thermal plants at 5,000 megawatts you need just 25,000 acres or 100 square kilometres i.e an area of 10 by 10 kilometres.

There are many exclusive zones or areas larger than this in Nigeria presently. To dedicate this to power alone will not be a problem whatsoever.

The great thing about this is that pumping 5000 mw into the grid during the day will give the thermal plants much needed rest for overnight operations.

To achieve this is equally simple. Partner with top solar system manufacturers and make them establish industrial operations right there on the proposed site.


4 trillion will go a massive way in achieving this.

bixton:



Not all of us are illiterates.....
What machine do they use in measuring the power generated and supplied that the FG is indebted to them for?

Is it not the same way those at the transmission side go about bringing up estimated bills to consumers for what was not. seen and used ?

Visit a NEPA office and they'll enlighten you. They have a system for measuring power supply, both the Gencos and Discos. They even track the amount of energy supplied to every transformer. That's how they stop load shed.

nairalanda1:
No payment, no money for improvements, no money for gas, no 24 hour light.

like we care.
The band A they forcefully put everyone in, where's the 18 hours electricity gone too?

Let them do "shaperly" and shut down please.
That N4tr should be used to buy solar for each household and let the gencos go and die. N4T for epileptic darkness.

Where and when is the electricity they supplied that amounted to 4trillion naira? These people are mad. The corruption in Nigeria knows no bounds.

nairalanda1:
And government no go pay.

Our gencos have been nice to us . They give us electricity on top of such debt from government

Which government wan pay?

Criminal gencos.

If I were the government, I would tell them to leave immediately. Because they are sounding like Nigerians don't pay light bills. Here in my house, I spend roughly 150k monthly on band A tariff. I just noticed the 150k is no longer enough, and my usage has not increased. I still don't understand how the prepaid is being tweek to read faster by discos.

Thunder ⚡ will Fire those who brought this Debt unto our neck ,for many NIGERIANS don't know about these NEPA)/DISCOS Debt- but ALL THE MONEY EMBEZZLED BY ALL PAST GOVT, MINISTERS AND THOSE IN GOVT-THEN.
As I'm typing,we don't have lights everyday - in the Morning and at Night,yet you are telling me of something I do not know about .
•GENCO, DISCOS and TCN- SHOULD BE LIQUIDATED NOW- they Are Fraud and Corruption laden.