Power generation companies have said that their long-time patriotism to the nation can no longer keep the power plants running, especially in the face of a fresh N1.2tn debt incurred in the first half of 2025, which increased the total debt to Gencos at N5.2tn
This was as the Minister of Power, Adebayo Adelabu, through his media aide, Bolaji Tunji, told The Punch on Monday that efforts were being made to defray part of the debt.
In a statement signed by the Chief Executive Officer of the Association of Power Generation Companies, Dr Joy Ogaji, on Monday, the GenCos warned that the power sector is heading toward collapse, unless the Federal Government urgently addresses its deepening liquidity crisis.
Ogaji said the Gencos have been patriotic for years by generating electricity despite mounting debts and losses, warning, however, that the patriotism is no longer enough to keep the lights on.
“Gencos are patriotic to the national course, and this has been demonstrated, up until now, but patriotism alone cannot keep the machines operational and keep the lights on” Ogaji stated, lamenting the growing debt burden and the unfunded assumptions underpinning recent electricity tariff decisions.
According to her, the Nigerian power industry is facing an outstanding debt of over N4tn — made up of N2tn from unpaid 2024 invoices, N1.9tn in legacy debts from 2015. She disclosed that there is another N1.2tn debt from energy supplied in the first six months of 2025, yet there is no payment plan in place, even as Gencos’ invoices averaged N250bn monthly.
She stated that “there is no FG policy on subsidies; it is debt accumulation. “The Gencos’ monthly generation invoices average at about N250bn. The Federal Government budgeted only N900bn for 2025, which is not cash-backed till this morning (July 21).
“Recall that Gencos are currently owed about N4tn (N2tn for 2024 and N1.9tn in legacy debts from 2015), with an accumulated debt of N1.2tn for the first half of 2025 alone. There are NO workable solutions, including cash payments, financial instruments, and debt swaps in sight at the moment.
“The 2025 government budget allocates only N900bn, raising concerns about its adequacy to cover arrears and future deficits. The power generated by Gencos has continued to be consumed in full without corresponding full payment,” she lamented.
