By Francis Ajuonuma, with additional report
Nigerians may continue to experience widespread electricity outages as power generation companies (GenCos) struggle under a mounting debt burden, projected to reach nearly N7 trillion by the end of the month.
The Chief Executive Officer and Executive Secretary of the Association of Power Generation Companies (APGC), Dr Joy Ogaji, disclosed this on Wednesday during a Hard Facts interview on Nigeria Info FM, warning that the worsening liquidity crisis is threatening the stability of electricity supply across the country.
“Most Nigerians must have heard me speak on various platforms that the GenCos are being owed over N6 trillion,” Ogaji said.
“This debt has been accumulating since 2015. By the end of this month, it will hit N7 trillion.”
She explained that payments from electricity distribution companies (Discos) have consistently fallen short of invoiced amounts, creating a funding gap that has weakened the entire power value chain.
“Sometimes they pay N10, sometimes N20. Currently, the best they are paying is N35,” she said.
According to Ogaji, the shortfall is also affecting gas suppliers, which provide about 75 per cent of the fuel used for power generation, further compounding operational challenges.
“Finance is the lifeblood of any business. Can any business survive in Nigeria or anywhere else in the world if it owes N6 trillion? They cannot,” she said.
She noted that the financial strain has left some generation companies unable to maintain critical equipment or meet obligations such as staff salaries, forcing several machines offline and reducing available capacity.
“If you go on the Naiso site, you will see that not all machines are available anymore,” she added.
On government intervention, the APGC CEO acknowledged assurances from the Minister of Power that efforts are underway to settle part of the debt, but stressed that the proposed payment is only a small portion of the total outstanding liabilities.
“Even the payment they are planning is about N300 billion out of N6.8 trillion,” she said.
Ogaji also expressed sympathy with Nigerians over persistent electricity challenges.
“I am also a Nigerian. I live in the country. Whatever you are facing, I am also facing,” she said.
She emphasised that urgent government action is required to address the mounting debt and stabilise the power sector, warning that failure to resolve the liquidity crisis could further weaken electricity generation nationwide.
