Nigeria’s power generation companies (GenCos) have issued a dire warning, stating that their long-standing patriotism can no longer sustain operations as debts in the sector have ballooned to N5.2 trillion. According to the Association of Power Generation Companies (APGC), an additional N1.2 trillion was incurred in the first half of 2025 alone, threatening the collapse of the already fragile electricity supply system.
In a statement on Monday, APGC CEO Dr. Joy Ogaji said the GenCos have remained committed to generating electricity despite crippling debts. However, she warned that this sense of national duty is no longer enough to keep power plants operational. “Patriotism alone cannot keep the machines running or the lights on,” Ogaji said, citing unpaid invoices, rising maintenance costs, and unrealistic electricity tariff assumptions.
She revealed that the industry is weighed down by N2 trillion in unpaid 2024 invoices, N1.9 trillion in legacy debts from 2015, and the latest N1.2 trillion from the first six months of 2025. With an average monthly invoice of N250 billion and no clear payment or subsidy plan in place, she described the Federal Government’s N900 billion 2025 budget as grossly inadequate—and not yet cash-backed.
Ogaji also criticized the proposed reduction in Band A electricity tariffs from N209 to N160/kWh, saying it rests on unsustainable subsidy projections and could worsen the sector’s liquidity crisis. She said GenCos are increasingly forced to find alternative ways to fund gas and services just to keep power flowing to the national grid, despite being underpaid for electricity already consumed.
Reacting to the concerns, Minister of Power Adebayo Adelabu, through his media aide, Bolaji Tunji, acknowledged the gravity of the debt crisis and said efforts were underway to settle part of the debt. However, despite earlier promises by the government to clear the arrears, including through promissory notes, the GenCos say no meaningful payments have been made since May, leaving the sector on the brink of shutdown.