Lights Out Imminent! GenCos Raise Red Flag Over Massive Unpaid Electricity Bills

Nigeria’s 23 electricity generation companies have issued a dire warning that they may be forced to halt operations due to the deepening financial crisis afflicting the power sector.....KINDLY READ THE FULL STORY HERE▶

The GenCos, operating under the Association of Power Generation Companies (APGC), stated that unpaid debts—now surpassing ₦4 trillion—have severely impacted their ability to sustain a steady power supply across the country. This warning was made in a statement released on Monday, signed by the Chairman of the APGC Board of Trustees, Col. Sani Bello (retd.).

They cautioned that without urgent government intervention, the growing debt burden and operational constraints could lead to a total shutdown of electricity generation nationwide. The GenCos described the failure to pay for electricity already delivered to the national grid as a dangerous development that could push Nigeria’s fragile power infrastructure to the brink of collapse.

In a statement titled “Over ₦4 Trillion Unpaid Invoices Threaten GenCos’ Imminent Shutdown,” the companies criticized the Federal Government for lacking a clear financial roadmap for the sector. They also pointed to worsening fiscal and operational issues within the Nigerian Electricity Supply Industry (NESI).

The GenCos specifically called out the Nigerian Bulk Electricity Trading Plc (NBET) and other relevant stakeholders, accusing them of marginalizing generation companies under the current “waterfall arrangement,” which allegedly prioritizes full payment to other service providers while GenCos receive only 9% to 11% of what they are owed.

“The Power Generation Companies (GenCos) are compelled to issue this press release to alert the Federal Government and key stakeholders to the urgent need to address the inadequate payment for electricity generated and consumed via the national grid,” the statement read. “This situation is critically threatening the viability of our power plants.”

They added that ongoing liquidity shortfalls have severely undermined their operational capacity and could cripple the entire electricity value chain if not addressed promptly.

The GenCos warned of possible national security risks if consistent power generation cannot be maintained.

It’s important to recall that in February, Minister of Power Adebayo Adelabu disclosed that the government’s cumulative debt to generation and distribution companies had exceeded ₦4 trillion.