Power firms say N6tn debt threatens electricity supply
Power generation companies in Nigeria, represented by the Association of Power Generation Companies, have revealed that unpaid invoices for electricity supplied to the national grid have reached about N6tn. The group says this growing debt is straining their ability to maintain, fuel, and expand power generation. Joy Ogaji, the association’s CEO, rejected allegations from the Nigeria Labour Congress of “institutionalised extortion,” calling such claims a misrepresentation of the sector’s challenges. The GenCos warn that persistent misrepresentation and unresolved debts could worsen power shortages and discourage investment.
TLDR
- Power generation companies report that outstanding unpaid invoices have surged to about N6tn, threatening the sustainability of electricity supply.
- The GenCos say revenue shortfalls and weak remittances are straining their finances, making it hard to invest in maintenance and expansion.
- Joy Ogaji rejected claims by the Nigeria Labour Congress that electricity firms are engaging in extortion, insisting the sector faces a deep-rooted liquidity crisis.
- The association says GenCos are open to forensic audits and dismisses suggestions that government support is politically motivated.
- Experts warn that unless the liquidity crisis is addressed, Nigeria could see further declines in power supply and economic productivity.
