Power generation companies under the umbrella of the Association of Power Generation Companies have disclosed that outstanding unpaid invoices for electricity supplied to the national grid have surged to about N6tn.
The GenCos said the rising debt has renewed concerns over the sustainability of power supply in Nigeria.
According to the association, the growing debt burden is driven by revenue shortfalls and weak remittances across the electricity value chain. It noted that the situation has significantly strained the financial capacity of generation companies to invest in maintenance, fuel procurement, and expansion projects.
The Chief Executive Officer of the association, Joy Ogaji, made the disclosure in a statement on Wednesday while reacting to recent comments by the Nigeria Labour Congress.
Ogaji accused labour of promoting a “simplistic and inflammatory narrative” that ignores the structural challenges facing the power sector.
“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,” she said.
“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 strongly rejected allegations by the NLC that electricity firms were engaged in “institutionalised extortion” and benefitting from phantom subsidies.
The association said such claims undermine ongoing efforts to resolve the liquidity crisis threatening the sector.
It explained that GenCos, which consist of over 20 member companies, are the most exposed players in the electricity value chain. The firms are entitled to about 60 per cent of market receivables based on invoiced energy bills but are currently owed over N6tn.
“The truth is that the power sector, over a decade after privatisation, remains hamstrung by severe liquidity challenges,” the association stated.
It added that the books of generation companies are open to scrutiny and could be subjected to forensic examination if necessary.
“If the NLC and any other institution find it necessary, let it be known that GenCo books are ready for any forensic examination. But the facts must be established and the real causes of the sector’s challenges identified,” the statement said.
The association also dismissed insinuations that proposed government support for the sector was a covert political arrangement ahead of elections. It described such claims as baseless and offensive to professionals in the industry.
The latest dispute follows remarks by the President of the Nigeria Labour Congress, Joe Ajaero, who accused electricity firms of exploiting Nigerians through tariff adjustments and alleged hidden subsidies. The labour union also threatened industrial action.
Nigeria’s electricity industry has struggled with chronic liquidity shortfalls since its privatisation in 2013. Experts say revenue collection gaps, tariff shortfalls, and market inefficiencies have led to mounting debts across the value chain.
Despite repeated government interventions, including payment assurances and financing support, the sector continues to face funding constraints. Analysts warn that unless the liquidity crisis is urgently addressed, the country may witness further decline in power supply, worsening economic productivity and industrial growth.
The GenCos said they remain committed to sustaining electricity generation but stressed that urgent policy reforms are needed to restore investor confidence and stabilise the market.
