A nationwide blackout is looming as electricity generation companies (GenCos) have warned of an imminent shutdown due to the Federal Government’s failure to settle outstanding debts now exceeding N4 trillion.
In a strongly worded statement issued on Monday, the Association of Power Generation Companies (APGC) decried the mounting unpaid invoices, revealing that only 30% of their monthly invoices are being settled — a situation they described as “crippling.”
“The Power Generation Companies are constrained to issue this press release to draw the attention of the Federal Government and key stakeholders to the need to urgently address the issue of inadequate payment for electricity generated by them and consumed on the national grid,” the statement read.
They emphasized that N2 trillion is owed for power supplied in 2024 alone, while legacy debts stand at N1.9 trillion, warning that continued non-payment could collapse the entire electricity value chain.
Minister of Power, Adebayo Adelabu, acknowledged the dire situation. According to his Special Adviser, Bolaji Tunji, the Ministry of Finance is stepping in to resolve the debt burden. “We are not unaware of this debt arising from the FG’s commitment on subsidy. Part of the debts are legacy debts, which were on the ground before the Minister of Power assumed office,” Tunji said.
Tunji added, “The issue is being discussed with the Ministry of Finance, making a case for how the debt must be paid. We expect the Ministry of Finance to take action on this soon.”
Engr. Jennifer Adighije, Managing Director of the Niger Delta Power Holding Company, confirmed President Bola Tinubu’s intervention.
“The issues basically are around liquidity. Once we have sufficient cash flow, then we can also procure more gas to ensure that we scale our generation capacity,” she said while receiving the 2025 Energy Times’ Young Achiever of the Year award.
The GenCos further accused the Nigerian Bulk Electricity Trading Plc of sidelining them in payment distribution under the sector’s “waterfall arrangement,” with some receiving as low as 9-11% of their due payments, while others get 100%.
“There is no clear financing plan. The 2025 budget only allocates N900 billion, raising concerns about its adequacy to cover arrears and future payments,” the APGC stressed.
They warned of national security implications if urgent measures are not taken, including implementing payment plans, improving liquidity, and securing gas supplies.
“The 2024 collection rate has dropped below 30%, and 2025 is not any better, severely affecting GenCos’ ability to meet financial obligations,” they added.