Power generation companies (GenCos) have intensified calls on the Federal Government to urgently tackle the deepening liquidity crisis in the Nigerian Electricity Supply Industry (NESI), as outstanding debts owed to them have surged to ₦6 trillion.
The Chairman of the Association of Power Generation Companies (APGC), Col. Sani Bello (Retd), expressed grave concern during the association’s 10th anniversary celebration in Abuja on Monday, warning that the escalating debt burden was severely undermining GenCos’ capacity to operate efficiently.
“Despite these constraints, power generation companies have continued to make the necessary sacrifices to keep the national grid running,” Bello said.
“Their commitment, despite regulatory hurdles, gas supply constraints, and liquidity shortfalls, is commendable.”
He stressed that achieving a reliable and sustainable power sector would require stronger collaboration among all stakeholders — including the Ministry of Power, NERC, NBET, TCN, gas suppliers, and DisCos — to address structural inefficiencies and policy inconsistencies.
“We must push for policies that are consistent, transparent, and investor-friendly,” he said. “The success of the GenCos is Nigeria’s success, because no nation can industrialize or prosper without reliable electricity.”
Sector on the Brink
The Managing Director/CEO of Mainstream Energy, Lamu Audu, whose firm operates the Kainji, Jebba, and Zungeru hydro plants, revealed that his company alone is owed over ₦600 billion, warning that the entire sector could collapse if the debt crisis persists.
In her remarks, the Executive Director of APGC, Dr. Joy Ogaji, disclosed that the debt has ballooned from ₦4 trillion at the end of 2024 to ₦6 trillion despite repeated government assurances of payment.
“The sector still faces recurring challenges — liquidity constraints, gas shortages, inadequate grid infrastructure, and regulatory uncertainty,” she said. “These challenges are not reasons for despair but for resolve. Progress requires strong political will, focused leadership, and unity.”
Also speaking, the Managing Director/CEO of the Nigerian Independent System Operator (NISO), Abdu Mohammed, congratulated APGC on its decade of advocacy and contribution since the privatization of the power sector, describing it as “a legitimate institutional stakeholder with a vital role in shaping a viable electricity market.”
The worsening liquidity strain in the power sector continues to threaten Nigeria’s generation and distribution capacity, with analysts warning that without urgent reforms and debt clearance, the national grid’s stability and long-term energy sustainability remain at risk.
