Power generation companies have intensified pressure on the federal government to urgently resolve the deepening liquidity crisis in the Nigerian Electricity Supply Industry (NESI), as the total debt owed to them has climbed to N6 trillion.
The Chairman of the Association of Power Generation Companies (APGC) Board, Col. Sani Bello (Retd), voiced concern that the escalating debt burden was seriously hampering the operations of the generation companies.
Speaking during the 10th anniversary celebration of APGC in Abuja on Tuesday, the operators cautioned that the current level of indebtedness had reached an unsustainable point.
Bello noted that despite the financial and operational constraints, power generation companies had continued to make significant sacrifices to keep the national grid functional.
“Their commitment despite regulatory hurdles, gas supply constraints, and liquidity shortfalls is very commendable,” he added.
He stressed that building a power sector that is efficient, dependable, and sustainable would require stronger cooperation among all key industry players, including the Ministry of Power, the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Bulk Electricity Trading Company (NBET), the Transmission Company of Nigeria (TCN), gas suppliers, and the electricity distribution companies (DisCos), to eliminate persistent structural barriers.
“We must push for policies that are consistent, transparent, and investor-friendly; policies that enable innovation and sustain power generation investments. The success of the GenCos is Nigeria’s success, because no nation can industrialise or prosper without reliable electricity.”
Also speaking, the Managing Director/Chief Executive Officer of Mainstream Energy, Lamu Audu, whose company operates the Kainji, Jebba, and Zungeru hydroelectric plants — the largest contributors to the national grid — revealed that his firm alone is owed over N600 billion.
Audu cautioned that the entire electricity sector could face imminent collapse if the debts were not promptly settled.
In her remarks, the Executive Director of APGC, Dr Joy Ogaji, disclosed that the total debt had grown from N4 trillion at the end of 2024 to N6 trillion, despite repeated assurances of payment from the Federal Government.
“The sector still faces recurring challenges, including endemic liquidity challenges now hampering the operations of the GenCos, gas shortages, inadequate grid infrastructure, and regulatory uncertainty. These seemingly endemic challenges are not insurmountable and not reasons for despair; they are reasons for resolve because each challenge reminds us that progress requires strong political will, focused leadership, persistence and transformation demands unity,” she stated.
Meanwhile, the Managing Director/Chief Executive Officer of the Nigerian Independent System Operator (NISO), Abdu Mohammed, congratulated APGC on its 10th anniversary and commended the association’s constructive contributions since the privatisation of the power sector.
“APGC is a legitimate institutional stakeholder, with a legal right to exist, engage, and contribute to the discourse on how to achieve a viable and efficient electricity market.”
