Nigeria’s power generation companies (GenCos) have revealed that their longstanding commitment to national service can no longer sustain operations amid soaring debts. According to the Association of Power Generation Companies (APGC), GenCos are owed approximately ₦4 trillion, including ₦2 trillion for power generated in 2024 and ₦1.9 trillion in legacy debt. With price controls in the electricity tariff regime, companies are receiving less than 30 percent of their monthly invoices, undermining their ability to cover operational costs, maintain turbines, procure spares, and meet staff obligations.
The liquidity crisis has deepened in 2025, with estimated additional borrowing or unmet obligations pushing GenCos’ total debt load to around ₦5.2 trillion, including ₦1.2 trillion fresh debt incurred in the first half of the year. GenCos warn that continued service under these financial constraints is no longer tenable, even patriotism cannot preserve power plants when cash flow collapses. They have threatened imminent shutdowns unless structured payment plans, debt swaps, or financial instruments are implemented promptly.
GenCos are calling on the Federal Government to honour its commitments and settle outstanding invoices through budget allocations and promissory notes, alongside enforcing a waterfall payment arrangement. Further complicating challenges are high taxation, royalty charges, and policy uncertainty that squeeze their already fragile revenue base.
