Power firms decry N6.8 trillion debt, rue financial, operational pressures
Power generation companies in Nigeria have raised concerns over operational challenges linked to a N6.8 trillion debt burden.
They also called for coordinated stakeholder efforts to sustain electricity supply across the country
The Chief Executive Officer of the Association of Power Generation Companies (GenCos), Joy Ogaji, made this known on Tuesday in Lagos.
Ms Ogaji said the sector was navigating financial and operational pressures, with some generation units experiencing constraints.
“We have not shut down, but some units are going offline progressively, not only due to gas supply issues, but also maintenance and funding challenges,” she said.
She noted that recent power supply fluctuations reflected broader issues, including infrastructure demands, outstanding payments and workforce pressures.
“Operators are working to sustain operations, but the current financial obligations have created constraints across the value chain,” she added.
Ms Ogaji said the N6.8 trillion obligation included outstanding invoices for electricity generated since 2015, capacity payments, foreign exchange differentials and accrued interest.
She noted that ongoing engagements between GenCos and the Nigerian Bulk Electricity Trading Company (NBET) were focused on reconciling outstanding obligations.
“The last reconciliation with NBET was in March 2025, and discussions are continuing to reach alignment on the figures,” she said.
Ms Ogaji also highlighted operational costs not fully reflected in existing tariffs, including plant start-ups and shutdowns, ancillary services and the Free Governor Mode of Operation (FGMO).
She added that gas supply and transmission considerations had also influenced plant utilisation levels.
Ms Ogaji expressed confidence that the situation could be addressed through sustained collaboration among stakeholders.
“The focus remains on strengthening the sector through coordinated action and adherence to established frameworks,” she said.
She emphasised the importance of continued efforts to enhance operational efficiency, maintain infrastructure and support long-term sustainability in the power sector.
(NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices
Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
States
Tinubu advised me never to negotiate with criminals, Gov Ododo says
“I don’t play with criminals, and I don’t negotiate with them. I can tell you that, as far as Kogi State is concerned, we don’t have a department for ransom payment,” he said.
Heading 1
U.S. has spent $37.5 billion on Iran war: Hegseth
“The estimate we have as of today is $37.5 billion,” Mr Hegseth said.
Lagos
Slain Lagos NURTW organising secretary buried amid tears
Mr Ajiboye died days after he was attacked by gunmen.
Africa
144 refugees, migrants dead, missing off Mauritania coast: UNHCR
“The refugees and migrants were reported dead or missing after attempting the perilous sea journey from West Africa towards Europe,” the agency said.
World
U.S. govt condemns Ortega’s ban on elections in Nicaragua
Mr Rubio urged the international community to rise against Mr Ortega’s dictatorship.
World
Zelensky sacks Ukraine’s top general after firing defence minister
Mr Syrskyi’s dismissal came days after Mr Zelensky fired Ukraine’s defence minister, Mykhailo Fedorov, a decision that sparked protests across the country.
