Nigeria’s Power Sector Crisis: GenCos Threaten Shutdown Over N4 Trillion Debt
Abuja, Nigeria - The Association of Power Generation Companies (APGC) has declared a state of emergency in Nigeria's electricity sector, warning that generating plants may be forced to shut down within weeks unless the Federal Government settles outstanding debts exceeding N4 trillion. Critical Situation: Total debt comprises N2 trillion for 2024 power supply and N1.9 trillion in legacy debts Current payments cover less than 30% of monthly generation costs Many plants now operating at a loss, with critical maintenance deferred Sector Impact:The liquidity crisis threatens to: Disrupt gas supply contracts Jeopardize workforce salaries Force emergency plant shutdowns Trigger nationwide blackouts Market Realities: GenCos supply 80% of grid electricity Current payments only cover about 27% of actual generation costs Working capital exhausted across most generation facilities Government Response:The Ministry of Power has: Acknowledged receipt of GenCos' distress call Scheduled emergency NESI meeting […]
