By Obas Esiedesa, Abuja
Power generation companies (GenCos) have renewed calls for the Federal Government to urgently tackle the worsening liquidity crisis in the Nigerian Electricity Supply Industry (NESI), as debts owed to them have ballooned to ₦6 trillion.
Speaking in Abuja during the 10th anniversary of the Association of Power Generation Companies (APGC), operators warned that the debt level had become unsustainable and was threatening the stability of the power sector.
The Chairman of the APGC Board, Col. Sani Bello (Retd.), expressed concern that the mounting debts were severely constraining GenCos’ operations.
“Despite these challenges, power generation companies have continued to make sacrifices to keep the national grid running,” he said. “Their commitment, despite regulatory bottlenecks, gas supply constraints, and liquidity shortfalls, is highly commendable.”
Bello stressed the need for stronger collaboration among key industry stakeholders — including the Ministry of Power, NERC, NBET, TCN, gas suppliers, and DisCos — to resolve systemic issues.
“We must push for consistent, transparent, and investor-friendly policies that enable innovation and sustain power generation investments. The success of GenCos is Nigeria’s success — no nation can industrialize without reliable electricity,” he added.
The Managing Director/CEO of Mainstream Energy, Lamu Audu, whose firm operates the Kainji, Jebba, and Zungeru hydro plants — the largest contributors to the national grid — revealed that the company alone is owed over ₦600 billion.
Audu warned that the entire power sector risks total collapse if the debts are not urgently settled.
APGC’s Executive Director, Dr. Joy Ogaji, disclosed that the debt had increased from ₦4 trillion at the end of 2024 to ₦6 trillion in 2025, despite repeated government assurances of payment.
“The sector still faces recurring challenges — liquidity shortfalls, gas shortages, inadequate grid infrastructure, and regulatory uncertainty. These are not reasons for despair but for renewed resolve and strong political will,” Ogaji stated.
Also speaking, the Managing Director/CEO of the Nigerian Independent System Operator (NISO), Abdu Mohammed, congratulated the APGC for its 10th anniversary, describing it as a vital stakeholder in Nigeria’s electricity market.
He, however, emphasized that only licensed market participants — not associations — have statutory or operational mandates under the Grid Code or Market Rules.
“While APGC plays an essential role in shaping discourse and fostering unity among GenCos, it’s important to distinguish between its advocacy role and the operational responsibilities of individual licensees,” Mohammed noted.
In response, the Federal Government assured power producers that their outstanding payments would be made.
The Permanent Secretary, Federal Ministry of Power, Mahmuda Mamman, represented by Evangeline Babalola, Director of Planning, Research, and Statistics, acknowledged the GenCos’ resilience in the face of enormous financial strain.
“Your dedication to keeping Nigeria’s lights on despite severe liquidity challenges is a demonstration of patriotism,” Mamman said.
“These achievements reflect your technical expertise, financial investment, and commitment to national growth. Despite being owed substantial debts, you have not abandoned your responsibilities — and for that, Nigeria owes you not just gratitude, but actual payment.”
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