Power generation companies (GenCos) in Nigeria are urging President Bola Tinubu to expedite a planned engagement with their leadership as rising debts now totalling ₦4.7 trillion threaten the operational stability of the electricity sector and raise fears of a national grid collapse.
The call comes amid heightened concerns over liquidity constraints and worsening financial strain within the sector.
The Managing Director and Chief Executive Officer of the Association of Power Generation Companies (APGC), Joy Ogaji, confirmed that no official date has been set for the proposed meeting with the President, but stressed the urgency of direct intervention.
“We are hopeful but cautious,” Ogaji said. “The industry cannot continue absorbing these levels of debt and systemic challenges. A swift resolution is needed.”
The request for a presidential audience follows a recent meeting between the Minister of Power, Adebayo Adelabu, and key stakeholders in the generation segment.
During the session, the Federal Government pledged to address part of the outstanding debt through immediate cash disbursement with the remainder to be settled through financial instruments such as promissory notes over the next six months.
Generation companies have expressed concern over operational disruptions tied to erratic gas supply, currency depreciation, and payment defaults.
The exchange rate depreciation—from ₦157/$ in 2013 to over ₦1,600/$ in 2025—has significantly raised maintenance costs and impacted loan servicing.
According to the APGC, the ₦4.7 trillion outstanding includes ₦2 trillion in unpaid invoices for electricity supplied in 2024, and ₦1.9 trillion in legacy debts.
The balance consists of unpaid capacity charges, penalties from grid fluctuations, and unaddressed inflationary adjustments.
Col. Sani Bello (Rtd.), Chairman of Mainstream Energy and head of the APGC board, described the current situation as unsustainable.
“The sector is at a tipping point. Without liquidity, no generation company can invest in maintenance, upgrades, or expansion. The grid itself is now at risk,” he said.
Industry leaders, including Kola Adesina of Egbin Power, have also labelled the situation a national emergency.
“Power underpins every part of our economy—from hospitals to manufacturing. Failure to stabilise this sector would affect the entire country,” Adesina noted.
In response, Minister Adelabu reiterated government’s commitment to resolving the issue. He acknowledged the urgency of the matter, adding that cash settlement of a major portion of the debt would be prioritised before rolling out alternative payment mechanisms.
The Federal Government is expected to announce the date for the meeting with the Gencos in the coming days. Stakeholders within the industry continue to warn that delays in execution could result in system-wide disruptions if financial obligations are not promptly met.
If the proposed debt clearance plan is implemented as pledged, it could stabilise Nigeria’s power supply chain, boost investor confidence in the sector, and avert further risk to national infrastructure.
