The Federal Authorities has disclosed ongoing plans to settle over N4 trillion owed to Energy Technology Firms (GenCos) for electrical energy generated and provided to the nationwide grid.
Mr. Bola Tunji, Particular Adviser on Strategic Communications and Media Relations to the Minister of Power, made this identified in Abuja throughout an interview with the Information Company of Nigeria (NAN) on Tuesday.
Tunji was responding to a current public attraction by the GenCos beneath the Affiliation of Energy Technology Firms (APGC), calling on the federal government and related stakeholders to urgently intervene and clear the debt backlog, which they are saying is crippling the sector.
“We anticipate a response from the Ministry of Finance very quickly. We’re not unaware of this debt arising from the Federal Authorities’s dedication on subsidy. A part of the money owed are legacy money owed, which have been on the bottom earlier than the minister of energy assumed workplace,” he added.
In response to Tunji, the debt is a serious impediment to the sleek functioning of the facility sector, and resolving it’s a prime precedence for the ministry.
“The minister has repeatedly harped on this, realizing the implication of such money owed to the operations of the assorted energy sector stakeholders, particularly the GenCos,” he mentioned.
GenCos warn of looming Energy Disaster
Earlier, the Affiliation of Energy Technology Firms (APGC) had raised the alarm over the deepening liquidity disaster within the Nigerian Electrical energy Provide Trade (NESI), warning that the continued accumulation of debt threatens the viability of the facility vegetation.
In an announcement signed by retired Col. Sani Bello, Chairman of APGC’s Board of Trustees, the GenCos disclosed they’re owed N2 trillion for energy provided in 2024 alone, along with N1.9 trillion in legacy debt.
He added that, other than being owed important sums, the GenCos additionally face a troublesome working surroundings marked by unstable trade charges, excessive inflation, and poor entry to finance.
“In addition to being owed big money owed, the GenCos have been additionally working beneath very harsh financial and monetary situations. It’s no extra information that the GenCos have continued to bear the brunt of the liquidity disaster within the Nigerian Electrical energy Provide Trade (NESI),” he said.
Stakeholders within the energy sector have repeatedly referred to as on the Federal Authorities to implement monetary stabilization measures to stop additional collapse of electrical energy era and distribution within the nation.
Extra insights
In March 2025, the Managing Director of the Niger Delta Energy Holding Firm (NDPHC), Jennifer Adighije referred to as for pressing presidential intervention to safe funding for ongoing energy initiatives and settle excellent funds owed to Technology Firms (GenCos), as a part of efforts to enhance electrical energy provide throughout Nigeria.
Adighije highlighted the extreme liquidity challenges going through the facility sector, with over N4 trillion owed to GenCos, which has hindered their means to function effectively.
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