- GenCos say debts of ₦5.6 trillion, subsidy delays, and gas supply diversions threaten Nigeria’s electricity supply and economic growth.
- The Association of Power Generation Companies urges the government to implement bold reforms that guarantee cost-reflective tariffs, clear debts, and incentivise investments.
Nigeria’s power generation companies (GenCos) warned that the electricity sector will collapse unless the Federal Government implements urgent and coordinated reforms.
In a goodwill message marking Nigeria’s 65th Independence anniversary, the Association of Power Generation Companies (APGC) declared that the generation segment of the value chain has reached a “critical crossroads.” APGC Chief Executive Officer Joy Ogaji stated that debts now exceed ₦5 trillion and subsidy payments consume over ₦200 billion monthly. She said these burdens place operators under crushing financial and operational pressure.
Ogaji insisted that patriotism cannot sustain operators while gas producers divert supply to other markets. She warned that the sector will deteriorate further without decisive action and undermine national development, economic stability, and investor confidence.
She commended Federal Government interventions that addressed liquidity challenges and encouraged private sector investment, but cautioned that operators could lose these gains if leaders fail to act boldly.
During the independence celebration, the association congratulated President Bola Tinubu, the government, and Nigerians. It described October 1 as a symbolic day that calls for reflection, unity, and renewed commitment to building a stronger nation.
GenCos rejected viral reports that claimed the Federal Government approved a ₦4 trillion debt refinancing plan to settle legacy debts. They clarified that no such approval exists, and industry analysts argued that the denial highlights persistent policy uncertainty that discourages investors.
Nigeria generates 13,000MW of installed capacity but delivers only 3,500–5,000MW to the grid because of gas shortages, transmission bottlenecks, and liquidity shortfalls. Over a decade after privatisation, operators still confront inadequate tariffs, foreign exchange constraints, and ballooning debts from the Nigerian Bulk Electricity Trading Company.
APGC disclosed that the sector’s debts reached ₦5.6 trillion in September. The group warned that failure to guarantee cost-reflective tariffs, clear outstanding obligations, incentivise gas supply, and expand transmission infrastructure will trigger a collapse.
Ogaji reaffirmed GenCos’ commitment to national growth but demanded urgent reforms. “Unless government resolves liquidity challenges, restores investor confidence, and guarantees cost-reflective tariffs, Nigeria will not achieve a stable electricity supply,” she said.