Power generation companies (GenCos) have threatened to shut down operations due to a N4 trillion debt owed by the federal government, raising fears of a nationwide blackout.
Col. Sani Bello (rtd), Chairman of the GenCos’ Board of Trustees, said the companies can no longer operate under the growing financial pressure. Despite fulfilling their duties and expanding capacity, they receive delayed and inadequate payments, he noted.
He said the GenCos are owed over N4trn — N2trn from 2024 alone and N1.9trn in legacy debts — and warned that the 2025 budget’s N900bn allocation is not enough to cover the arrears or future bills.
He added that poor revenue collection, forex challenges, and regulatory costs have worsened the crisis.
The GenCos are calling for full and timely payments, a clear debt repayment plan, and better funding support from the government.
Meanwhile, a power ministry spokesperson said the debt issue is being addressed in collaboration with the Ministry of Finance and a resolution is expected soon.
