Power generation companies in Nigeria have disclosed that they are owed nearly N6 trillion for electricity already generated and supplied to the national grid, warning that the mounting debt poses a serious risk to stable power supply across the country.
Operating under the Association of Power Generation Companies, the firms said the huge backlog of unpaid invoices has severely hampered their operations. They noted that the liquidity crunch is limiting their ability to service and maintain critical equipment, procure fuel, and invest in expansion projects.
The association, which represents more than 20 generation companies, described its members as the worst-hit stakeholders in the electricity value chain, with outstanding payments now exceeding N6 trillion.
The group also dismissed allegations by the Nigeria Labour Congress that electricity companies are engaged in “institutionalised extortion.” According to the generation firms, such claims are misleading and fail to address what they termed the real issue — a deep-rooted liquidity crisis within the power sector.
They warned that unless urgent steps are taken to resolve the debt burden, the sustainability of electricity generation and overall grid stability could be threatened.
