Electricity Generation Companies (GenCos) have called on the Federal Government to pay its outstanding debt of over N2 trillion to prevent potential national security challenges. The board's chairman, Col. Sani Bello (retd.), made this appeal in a statement released in Abuja, highlighting the critical financial shortfall affecting their operations.
Bello explained, “GenCos are currently owed over N2 trillion for power they generated, put onto the national grid, and consumed by end users.” He noted that this significant debt threatens the companies' ability to function effectively.
In addition to the N2 trillion owed, Bello pointed out an extra N1.7 trillion deficit caused by the Supplementary Multi-Year Tariff Order (MYTO). He stated, “This is in addition to the over N1.7 trillion funding gap created in the recent supplementary MYTO order 2024 without a designated fund to fill the gap.”
Bello warned the government about the severe consequences of not settling these debts, emphasizing the urgency of the situation. “In the light of the severity of the issues highlighted above, the GenCos are requesting that immediate and expedited action is taken to prevent national security challenges that may result from the failure of the GenCos to sustain steady generation of electricity for Nigerians,” he urged.
The chairman also mentioned that the substantial debt was hindering the GenCos' ability to meet their obligations, including payments to lenders, operation and maintenance (O&M), necessary maintenance, spare parts procurement, and employee-related commitments.
Bello concluded with a call for swift government action to resolve the financial crisis facing the GenCos, underscoring the importance of maintaining steady electricity generation for national stability.
