Nigeria’s power generation companies (GenCos) have once again urged the Federal Government to take immediate action to address the deepening liquidity crisis in the Nigerian Electricity Supply Industry (NESI), as unpaid debts to the firms have now soared to a staggering ₦6 trillion.
The GenCos made the call in Abuja during the 10th anniversary celebration of the Association of Power Generation Companies (APGC). Industry players warned that the growing debt burden has reached a breaking point, threatening the very stability of Nigeria’s electricity sector.
Speaking at the event, APGC Board Chairman, Col. Sani Bello (Rtd.), expressed concern that the rising debts were crippling the operations of generation firms.
“Despite all odds, GenCos have continued to make sacrifices to keep the national grid running,” he said. “Their resilience — in the face of gas supply challenges, regulatory bottlenecks, and severe liquidity shortages — is commendable.”
Bello called for closer collaboration among key industry stakeholders, including the Ministry of Power, NERC, NBET, TCN, DisCos, and gas suppliers, to tackle systemic issues weighing down the sector.
“We must create stable, transparent, and investor-friendly policies that support innovation and sustain investments in power generation,” he added. “The success of GenCos is Nigeria’s success — no country can achieve industrial growth without reliable electricity.”
Lamu Audu, Managing Director of Mainstream Energy — operators of the Kainji, Jebba, and Zungeru hydro plants, which are among Nigeria’s largest power stations — revealed that the company alone is owed over ₦600 billion.
He warned that the entire power sector could face collapse if urgent measures are not taken to clear the debts.
According to APGC’s Executive Director, Dr. Joy Ogaji, the industry’s debt profile has ballooned from ₦4 trillion in 2024 to ₦6 trillion in 2025, despite several promises of settlement from the government.
“The sector continues to battle recurring issues — liquidity shortfalls, gas constraints, weak grid infrastructure, and policy uncertainty. But these should motivate action, not resignation,” Ogaji said.
In his remarks, the Managing Director of the Nigerian Independent System Operator (NISO), Abdu Mohammed, congratulated the APGC on its milestone anniversary, describing it as a critical stakeholder in the power sector. However, he clarified that only licensed market participants — not associations — have operational responsibilities under Nigeria’s power market rules.
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“While APGC plays a key advocacy role and promotes unity among GenCos, operational accountability lies with each licensed entity,” he noted.
Representing the Federal Government, the Permanent Secretary of the Ministry of Power, Mahmuda Mamman, assured that efforts were underway to offset the outstanding payments owed to GenCos.
Mamman, represented by the Director of Planning, Research, and Statistics, Evangeline Babalola, praised the companies for their perseverance and commitment to keeping Nigeria’s lights on despite the financial strain.
“Your dedication in these difficult times shows true patriotism,” he said. “Nigeria owes you not just gratitude, but actual payment for your service and sacrifice.”
