GenCos Warn of Power Collapse as Unpaid Debts Hit ₦5.2 Trillion

Power generation companies have warned that their long-standing patriotism is no longer enough to sustain electricity supply, as fresh debts of ₦1.2 trillion in the first half of 2025 have pushed their total unpaid dues to a staggering ₦5.2 trillion.

Dr. Joy Ogaji, CEO of the Association of Power Generation Companies (APGC), sounded the alarm in a statement on Monday, urging the Federal Government to act swiftly to avert a total collapse of the sector. According to her, the industry is now in deep crisis, with no viable plan in place to clear the growing debt.

“Gencos are patriotic to the national cause, and this has been demonstrated up until now, but patriotism alone cannot keep the machines operational and keep the lights on,” Ogaji warned, adding that mounting losses and unpaid bills were crippling operations.

She said GenCos are owed ₦4 trillion in existing debt — ₦2 trillion from 2024 and ₦1.9 trillion in legacy debt from 2015 — with an additional ₦1.2 trillion already accumulated in the first six months of 2025. Despite generating power monthly at a cost of ₦250 billion, there is no guaranteed payment or plan for debt relief.

Ogaji criticised the government’s failure to adequately fund its subsidy commitments, noting that the ₦900 billion allocated for 2025 was yet to be cash-backed as of July 21. “There are no workable solutions in sight — no cash payments, no financial instruments, no debt swaps,” she added.

Meanwhile, Minister of Power Adebayo Adelabu, via his media aide Bolaji Tunji, confirmed to The Punch that the government is making efforts to offset part of the debt burden.

However, without immediate and concrete action, stakeholders fear Nigeria’s power supply could plunge into deeper darkness.