By Ighomuaye Lucky. O
Electricity Generation Companies (GenCos) have cried out over the N4 trillion debt owed by the Federal Government, comprising N2 trillion for 2024 and over N1.9 trillion in legacy debts.
In a statement made available to newsmen, GenCos decried the absence of solutions like cash payments or debt swaps, adding that the 2025 budget’s N900 billion allocation falls short of covering arrears and future payments.
“The power generated by GenCos is consumed in full without full payment,” the statement read, citing issues like the partial activation of contracts since July 2022, forex volatility, and a supplementary Multi-Year Tariff Order (MYTO) leaving 90 percent of invoices unpaid.
GenCos lampooned the payment waterfall in the Nigerian Electricity Supply Industry (NESI), which prioritises entities like NERC and NBET, leaving GenCos with just 9–11 percent of invoices.
“This is a clear departure from Power Purchase Agreements,” they said, urging priority payment to sustain electricity production.
