The Federal Government’s delay in engaging Nigeria’s power generation companies (GenCos) over a staggering N4.7 trillion debt is raising serious concerns about the future of the country’s electricity sector. Despite promises made in May 2025 that President Bola Tinubu would hold a high-level meeting with the GenCos, no formal engagement has taken place nearly two months late
Speaking to our correspondent, Chief Executive Officer of the Association of Power Generation Companies (APGC), Dr. Joy Ogaji, confirmed that there has been no contact from the Federal Government regarding the proposed presidential meeting. “Not yet. We are still waiting,” Ogaji said, stressing that the delay only worsens the liquidity crisis facing the sector.
In a previous meeting between the Minister of Power, Adebayo Adelabu, and the leadership of the GenCos, assurances were given that N2 trillion out of the N4.7 trillion debt would be paid before the end of the next quarter. The remainder, it was said, would be settled through financial instruments such as promissory notes within six months.
However, findings by ireportmedia reveal that not a single kobo has been paid to the GenCos as of July 1, 2025. While Adelabu’s media aide, Bolaji Tunji, insists the meeting is still being planned, insiders say the delay is compounding operational challenges and threatening the stability of the national grid.
The total debt owed to GenCos includes N1.9 trillion in legacy debts and over N2 trillion for power supplied in 2024 alone. In the first eleven months of 2024, GenCos issued invoices totaling N2.7 trillion, but only N762.1 billion was paid—representing just 28.18 percent of the total due.
Worsening the situation is the devaluation of the naira, which dropped from N157 to $1 in 2013 to about N1,600 to $1 in 2025, affecting loan repayments, foreign obligations, and plant maintenance. According to Ogaji, GenCos are struggling with erratic gas supply, non-payment, and unproductive taxation, yet continue to operate under enormous risk.
“The government must act with urgency. We’ve submitted all our proposals. The sector cannot continue to operate under these conditions,” Ogaji warned.
The liquidity crisis is particularly affecting gas-fired thermal plants, which make up the bulk of Nigeria’s generation capacity. Transcorp Power, one of the major players in the sector, disclosed it is owed over N650 billion and has had to slow down expansion plans due to cash constraints.
At the end of every month, GenCos accumulate an additional N200 billion in unpaid invoices, according to a confidential document. Industry sources say some power plants may be forced to shut down or be denied access to gas if the Federal Government does not intervene swiftly.
The Federal Government’s 2025 budget earmarks just N900 billion for the entire power sector—a figure stakeholders say is insufficient to address the current debt burden. There is growing anxiety that, without immediate disbursement or a binding repayment plan, the GenCos may reduce output, thereby threatening national grid stability.
Despite reassurances from the power ministry, industry experts argue that only a firm presidential directive and payment timeline can avert a deeper crisis. “We need political will, not just policy statements. Time is running out,” one energy analyst said.
As the power sector teeters on the brink, the delay in meeting with President Tinubu sends worrying signals to investors and operators in the energy value chain. For now, the GenCos say they remain hopeful—but time, debt, and grid pressure may soon force their hand.
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