By Obas Esiedesa, Abuja
Power generation companies, yesterday intensified pressure on the Federal Government (FG) to urgently address the worsening liquidity crisis in the Nigerian Electricity Supply Industry (NESI) as debts owed to them have risen to N6 trillion.
The Chairman of the Association of Power Generation Companies (APGC) Board, Col. Sani Bello (Retd), expressed concern that the mounting debt burden was severely constraining GenCos’ operations.
Speaking at the 10th anniversary of APGC in Abuja yesterday the operators warned that the debt level had become unsustainable.
Bello stated that despite these constraints, power generation companies have continued to make the necessary sacrifice and have kept the national grid running.
“Their commitment despite regulatory hurdles, gas supply constraints, and liquidity shortfalls is very commendable”, he added.
He emphasised that achieving a fully efficient, reliable, and sustainable power sector required stronger collaboration among all industry stakeholders including the Ministry of Power, NERC, NBET, TCN, gas suppliers, and DisCos, to address systemic bottlenecks.
“We must push for policies that are consistent, transparent, and investor-friendly; policies that enable innovation and sustain power generation investments. The success of the GenCos is Nigeria’s success, because no nation can industrialize or prosper without reliable electricity”.
Also speaking, the Managing Director/CEO, Mainstream Energy, Lamu Audu, whose firm operates the Kainji, Jebba and Zungeru hydro plants, the largest contributors to the national grid, said the company alone is owed over N600 billion.
Audu warned that the entire power sector risked collapse if the debts were not urgently addressed.
In her remarks, the Executive Director, APGC, Dr Joy Ogaji disclosed that the debt has risen from N4 trillion as at the end of 2024 to N6 trillion, despite payment assurances from the government.
“The sector still faces recurring challenges, endemic liquidity challenges now hampering the operations of the GenCos, gas shortages, inadequate grid infrastructure, and regulatory uncertainty. These seemingly endemic challenges are not insurmountable and not reasons for despair, they are reasons for resolve, because each challenge reminds us that progress requires strong political will, focused leadership, persistence and transformation demands unity”, she stated.
On his part, the Managing Director/CEO, Nigerian Independent System Operator (NISO) Abdu Mohammed, congratulated APGC for its 10th anniversary and the positive role it has played since the privatization of the power sector.
“APGC is a legitimate institutional stakeholder, with a legal right to exist, engage, and contribute to the discourse on how to achieve a viable and efficient electricity market.
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