Unpaid Electricity Bills Hit N6 Trillion as Nigeria’s Power Sector Faces Liquidity Crisis
Nigeria’s power sector is facing a deepening financial crisis as electricity generation companies, under the Association of Power Generation Companies (GenCos), report that unpaid electricity bills have now climbed to about N6 trillion. The staggering debt highlights the fragility of the nation’s power supply and raises concerns over the ability of GenCos to maintain, expand, and invest in electricity infrastructure.
The GenCos explained that the mounting arrears stem from weak revenue collection and poor remittances across the electricity value chain. This has severely constrained the companies’ capacity to procure fuel, invest in infrastructure, and carry out essential maintenance, further threatening the stability of power supply for millions of Nigerians.
Reacting to criticism from the Nigeria Labour Congress (NLC) accusing electricity firms of “institutionalised extortion,” Joy Ogaji, CEO of the GenCos association, rejected the claims as misleading. She described the accusations as “simplistic and inflammatory,” noting that they ignore the structural and liquidity challenges the sector has faced since privatisation over a decade ago.
The power companies emphasized that they are open to scrutiny and forensic audits to prove transparency in their operations. They warned that misrepresentations about government support or sector financing could discourage investors and exacerbate Nigeria’s chronic power shortages. The GenCos urged constructive engagement with labour and stakeholders to implement reforms that would address the long-standing weaknesses in the electricity industry.
Experts say that unless urgent policy and financial interventions are implemented, Nigeria’s electricity supply could deteriorate further, affecting industrial growth and overall economic productivity. The GenCos stressed their commitment to sustaining electricity generation but warned that the sector’s survival depends on immediate actions to restore liquidity, improve revenue collection, and build investor confidence.
source: punch