Power generation companies under the umbrella of the Association of Power Generation Companies have disclosed that outstanding unpaid invoices for electricity generated and supplied to the national grid have surged to about N6tn, raising fresh concerns over the sustainability of power supply in Nigeria.
The group said the growing debt burden, driven by revenue shortfalls and weak remittances across the electricity value chain, has significantly strained the financial capacity of generation companies to invest in maintenance, fuel procurement, and expansion.
The power generation companies also strongly rejected allegations by the Nigeria Labour Congress that electricity firms were engaged in “institutionalised extortion,” insisting that the claims misrepresent the deep-rooted liquidity crisis threatening the country’s power sector.
The Chief Executive Officer of the association, Joy Ogaji, made the announcement in a statement on Wednesday in reaction to recent comments by the Nigerian Labour Congress. Ogaji accused labour of peddling a “simplistic and inflammatory narrative” that ignored the structural challenges facing the industry.
She said, “While we acknowledge the frustrations of Nigerians regarding the unstable power supply, we must firmly reject the NLC’s characterisation of the sector’s challenges. To label the legitimate operations of power firms as robbery and a grand deception is a misrepresentation of the facts and a disservice to the ongoing efforts to stabilise Nigeria’s electricity supply industry.”
The GenCos said the remarks by labour, including allegations of phantom subsidy and institutional extortion, undermined ongoing efforts by stakeholders to resolve the liquidity crisis and ensure a stable electricity supply.
The association said the GenCos, consisting of over 20 member companies, were in fact the most exposed players in the electricity value chain, with outstanding unpaid invoices now exceeding N6tn.
