Power Generation Crisis: Nigerian GenCos Warn of Nationwide Blackout Over N4 Trillion Debt, Say 2025 Budget Allocation Inadequate
Story written by Springnewsng Media Limited | April 13, 2025 | By Daniel Chidi, Reporter for Springnewsng Media Organization
Nigeria’s power generation companies (GenCoshttp://Nigeria’s power generation companies (GenCos) have sounded the alarm over a looming nationwide electricity shutdown, citing over N4 trillion in unpaid debts by the Federal Government. The power producers warn that the crisis could cripple the national grid if urgent measures are not taken.
According to a statement released on Monday by Colonel Sani Bello (rtd), Chairman of the Board of Trustees of the Association of Power Generation Companies (APGC), GenCoshttp://Colonel Sani Bello (rtd), Chairman of the Board of Trustees of the Association of Power Generation Companies (APGC), GenCos are owed N2 trillion for power supplied in 2024 and N1.9 trillion in legacy debt. Yet, they continue to receive less than 30% of their monthly invoices for electricity sent to the national grid.
The GenCos also criticized the N900 billion earmarked for the power sector in the 2025 national budget, describing it as grossly inadequate to address both outstanding debts and future payments.
“The flow of money within the power industry remains a fundamental problem preventing Nigerians from enjoying stable electricity,” the statement emphasized.
The companies say that, despite consistent electricity supply under the Partial Activation of Contracts since July 2022, they are not being paid in full. The liquidity shortfall, combined with high corporate taxes, regulatory charges, and volatile foreign exchange rates, has severely impacted their ability to operate.
They warned that without a structured repayment plan, including cash settlements, financial instruments, or debt swaps, the entire power generation sector is at risk of collapsing—plunging the nation into a full-scale blackout.
“Despite massive investments and the drive to increase capacity, GenCos are suffocating under systemic challenges, mounting debts, and the absence of a clear financial recovery strategy,” the statement said.
As Nigeria struggles with frequent power outages, the GenCos are calling on the Federal Government to act swiftly to stabilize the sector and restore investor confidence, before the crisis escalates into a national emergency.
