By Atoyebi Nike
Nigeria’s power generation companies (Gencos) have raised fresh concerns over the sector’s looming collapse, revealing that a fresh N1.2 trillion debt in the first half of 2025 has pushed their total unpaid invoices to N5.2 trillion.
Dr Joy Ogaji, CEO of the Association of Power Generation Companies (APGC), said on Monday that the Gencos’ years of patriotic service were no longer enough to sustain operations without urgent government intervention.
“Patriotism alone cannot keep the machines running or the lights on,” she said during a press briefing, stressing that there is no functional payment structure in place to support the energy they continue to generate and supply.
According to her, outstanding debts include N2 trillion from 2024, N1.9 trillion in legacy arrears from 2015, and N1.2 trillion accrued between January and June 2025. She added that while Gencos submit invoices averaging N250 billion monthly, the 2025 national budget allocated just N900 billion a figure not backed by cash disbursement as of July 21.
Ogaji also criticised the planned reduction of Band A tariffs from N209 to N160 per kilowatt-hour, calling it an unrealistic move based on subsidy assumptions that further strain the already fragile market.
Responding, Minister of Power Adebayo Adelabu, through his media aide Bolaji Tunji, acknowledged the debt crisis, saying efforts were underway to pay part of the outstanding sum. He confirmed the issue had been raised with relevant authorities, but no timeline for payment was given.
Despite a previous government promise in May to clear part of the debt immediately and the rest through promissory notes within six months, Gencos say no action has been taken more than two months later.
“The power they generate is consumed without corresponding full payment. We need immediate solutions before the system breaks down,” Ogaji warned.
