Senator Enyinnaya Abaribe has raised fresh concerns over Nigeria’s deepening power sector crisis, revealing that the Federal Government has yet to pay electricity generation companies (GenCos) any funds in 2025, resulting in an accumulated debt of N800 billion so far this year.
Speaking at a retreat organized by the Nigerian Electricity Regulatory Commission (NERC) in Ikot-Ekpene, Akwa Ibom State, Abaribe, who chairs the Senate Committee on Power, lamented the staggering liquidity crunch crippling the industry.
“The tariff shortfall that we have means that every month, the government owes N200bn of payments. For this year, 2025, no payment has been made. In other words, we’re already short by N800bn,” Abaribe said while addressing journalists.
He noted that the N800bn is in addition to an already existing debt of over N3 trillion owed to GenCos and gas suppliers. This, he said, has placed a huge burden on the entire electricity value chain, especially as gas suppliers are now reluctant to keep supplying without guarantees.
The senator called for urgent action and policy alignment between federal and state governments in tackling the crisis.
“A decision must be taken. Do we subsidize fuel used individually, or subsidize electricity that powers production for all of us?” Abaribe asked.
Also speaking at the retreat, Minister of Power, Adebayo Adelabu, highlighted some achievements of the Bola Tinubu-led administration, particularly the modest improvements in power generation. However, he admitted the sector faces critical challenges such as poor funding and widespread vandalism of infrastructure.
“Only in this country are energy equipment being vandalized in such magnitude,” Adelabu said.
Governor Umo Eno of Akwa Ibom State, represented by his deputy Senator Akon Eyakenyi, emphasized the importance of stable electricity in powering Small and Medium Enterprises (SMEs), which he described as the engine of economic growth.
He expressed optimism that with the quality of deliberations at the retreat, practical solutions would emerge to resolve the long-standing issues in the sector.
