Nigeria’s power generation companies (GenCos) have raised alarm over the worsening state of the electricity sector.
They have cautioned that without urgent reforms, the industry risks deeper deterioration with dire implications for economic growth, investor confidence, and national development.
In a goodwill message marking Nigeria’s 65th Independence anniversary, the Association of Power Generation Companies (APGC) described the generation segment of the electricity value chain as being at a “critical crossroads” due to rising debts, liquidity constraints, and operational bottlenecks.
Chief Executive Officer of the APGC, Joy Ogaji, who signed the statement, said debts owed to GenCos have now surpassed ₦5 trillion, largely on account of unsettled subsidy payments that cost the Federal Government more than ₦200 billion monthly. She warned that “patriotism alone cannot sustain the operators,” particularly as gas suppliers increasingly divert output away from power plants.
“Without urgent, coordinated, and sustained action, the sector risks further deterioration, a situation that would have far-reaching implications for national development, economic stability, and investor confidence,” Ogaji cautioned.
While acknowledging recent interventions to address market liquidity and stimulate private investment, the GenCos stressed that such gains could be quickly reversed. “At 65, the reality is that the generation segment of the power value chain stands at critical crossroads. GenCos are under enormous financial and operational pressure,” the association said.
(Ripples Nigeria)
