Power generation companies (GenCos) in Nigeria have issued a dire warning of a potential nationwide blackout due to a staggering N4 trillion debt owed by the federal government.
In a statement issued Monday by Colonel Sani Bello, Chairman of the Association of Power Generation Companies (APGC), the GenCos disclosed that N2 trillion is owed for electricity supplied in 2024, with an additional N1.9 trillion in long-standing debts.
They lamented that they receive less than 30% of payments on monthly invoices, making continued operations unsustainable. “The power generation companies are at the center of the ongoing liquidity crisis in the Nigerian Electricity Supply Industry (NESI),” the statement read, citing persistent challenges including systemic barriers, unfavorable policies, and no clear repayment strategy.
The GenCos warned that without immediate financial intervention, the entire power supply system could collapse, leading to widespread blackouts. They noted that payment collection in 2024 has fallen below 30%, with little hope for improvement in 2025. They also pointed to heavy taxation, steep regulatory charges, and volatile exchange rates as compounding their financial woes.
Despite consistent power supply efforts since the Partial Activation of Contracts in July 2022, the companies say they are undercompensated.
They urged the federal government to act swiftly to prevent a total shutdown, warning that a full-scale blackout could pose a national security risk. Additionally, they criticized the N900 billion earmarked for the power sector in the 2025 budget as grossly insufficient and called for urgent reforms, including a structured debt repayment plan—through cash, financial instruments, or debt swaps—to avert the collapse of the country’s power generation industry.
