• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Friday, May 30, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

GenCos Raise Alarm Over N4trn Unpaid Invoices, Says Shutdown Imminent

by Nse Anthony - Uko
2 months ago
in News
Gencos
Share on WhatsAppShare on FacebookShare on XTelegram

Nigeria’s electricity generation companies (GenCos) have raised the alarm over an impending collapse of their operations due to the crippling debt of over N4 trillion owed to them by the federal government.

Advertisement

The debt, comprising legacy obligations and unpaid subsidies for 2024, was severely undermining the power sector’s ability to function optimally.

The Board of Trustees chairman of the Association of Power Generation Companies (APGC), Col. Sani Bello (rtd), who made this known on Monday, said GenCos were currently owed N2 trillion for power supplied in 2024 and N1.9 trillion in legacy debts.

The companies noted that plants were being paid less than 30 per cent of monthly invoices for power supplied to the national grid.

The companies stated: “It is no more news that the power generation companies have continued to bear the brunt of the liquidity crisis in the Nigerian Electric Supply Industry (NESI).

RELATED

Taraba Lawmaker Defends Governo Kefas’ N6.39bn Foreign Trips

Free, Compulsory Education Non-negotiable In Taraba, Gov Kefas Assures

41 seconds ago
Kwara Governor Salutes Christians At Easter

Mokwa Flood: Govs Shocked, Express Solidarity With Victims, Niger Gov’t

3 minutes ago

“GenCos, on their part as responsible investors with patriotic zeal, have made large-scale investments and have continued to demonstrate absolute commitment by ramping capacities in line with their contract these over 10 years, amid system constraints, policies & regulations that are not investors friendly, increasing debts owed by the FGN without a clear financing plan, lack of firm contracts and a market without securitisation but based on best endeavours, thereby hampering future planning.

“Notwithstanding this and other severe difficulties the GenCos have battled with since takeover in 2013, they have kept to the terms of their contractual agreements by ramping up capacity, which has been largely constrained systemically.

“Against the backdrop of the many challenges facing the power sector in Nigeria, the crises from cash liquidity are on the top burner and have reduced GenCos ability to continue to perform their obligations, thereby threatening to undermine the Electricity value chain completely.

“The GenCos expectations of being settled through external support such as the World Bank PSRO has also been dampened due to other market participants’ inability to meet their respective distribution linked indicators (DLIs), enshrined in the Power Sector Recovery Program (PSRP).”

The GenCos added, “In light of the severity of the issues highlighted above, the GenCos are requesting that immediate and expedited action be taken to prevent national security challenges that may result from the failure of the GenCos to sustain steady generation of electricity for Nigerians.

“The 2024 collection rate has dropped below 30 per cent, and 2025 is not any better, severely affecting GenCos’ ability to meet financial obligations. Tax and Regulatory Challenges: High corporate income tax, concession fees, royalty charges, and new FRC compliance obligations are further straining GenCos’ revenue. GenCos are currently owed about N4 trillion (N2 trillion for 2024 and N1.9 trillion in legacy debts). No possible solutions, including cash payments, financial instruments, and debt swaps, are in sight.

“The 2025 government budget allocates only N900 billion, raising concerns about its adequacy to cover arrears and future payments. The power generated by GenCos have continued to be consumed in full without corresponding full payment, notwithstanding the commencement of the Partial Activation of Contracts in the NESI which took effect from July 1, 2022, the minimum remittance order, bilateral market declaration, waterfall arrangement, the risks of inflation, forex volatility with no dedicated window to cushion the effect of the forex impact, the supplementary MYTO order which leaves about 90% of GenCos monthly invoices unmet without a bankable securitisation, or financing plan. This situation has dire consequences for the GenCos and by extension the entire power value chain.”

The generation companies, which called for the implementation of payment plans to settle all outstanding GenCos invoices, observed that “the flow of money within the power industry is one of the fundamental problems preventing Nigerians from enjoying continued and sustainable improvement in electricity supply.”


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel

Breaking NEWS: Nigerians can now earn in US Dollars, acquire ultra premium domains for low and sell for super profit. Our client acquired a domain for $3715 and got it sold for $42,000. Click here to see how you too can profit from the business.


Tags: Electricity distribution companies (DisCos)GenCos
SendShareTweetShare
Previous Post

Rivers Gov’t Demands N300m Refund From NBA For Relocating Confab To Enugu

Next Post

MAAUN Mourns MLSCN Registrar/CEO Prof. Erhabor

Nse Anthony - Uko

Nse Anthony - Uko

You May Like

Taraba Lawmaker Defends Governo Kefas’ N6.39bn Foreign Trips
News

Free, Compulsory Education Non-negotiable In Taraba, Gov Kefas Assures

2025/05/30
Kwara Governor Salutes Christians At Easter
News

Mokwa Flood: Govs Shocked, Express Solidarity With Victims, Niger Gov’t

2025/05/30
Free Education: 80% Of Taraba Children Off The Streets – Monarch
News

Police Escort, Not Bandits Killed My Sister — Gov Kefas

2025/05/30
NSUK, First University To Receive TYBLI Book Box
Books & Arts

NSUK, First University To Receive TYBLI Book Box

2025/05/30
Dangote, Burna Boy, Ngozi Okonjo-Iweala, Mo Salah, Others To Bag Awards
News

Dangote, Burna Boy, Ngozi Okonjo-Iweala, Mo Salah, Others To Bag Awards

2025/05/30
Remi Tinubu Donates 7 Buses To Christian Youth Group
News

Remi Tinubu Donates 7 Buses To Christian Youth Group

2025/05/30
Leadership Conference advertisement

LATEST

Free, Compulsory Education Non-negotiable In Taraba, Gov Kefas Assures

Mokwa Flood: Govs Shocked, Express Solidarity With Victims, Niger Gov’t

Police Escort, Not Bandits Killed My Sister — Gov Kefas

Tinubu Declares NSF 2024 Closed, Urges Investment In Athletes For National Devt

NSC, Education Ministry Launch Joint Committee To Revitalise School Sports

Adamawa Boys, Girls Qualify For 25th MILO Secondary Schools Basketball Championship

NSUK, First University To Receive TYBLI Book Box

Dangote, Burna Boy, Ngozi Okonjo-Iweala, Mo Salah, Others To Bag Awards

Remi Tinubu Donates 7 Buses To Christian Youth Group

From Curiosity To Impact: How TEXEM’s May 2025 Programme Sparked Strategic Leadership For Digital Age

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.