Power firms debt hits N6tn, GenCos warn of worsening electricity supply amid liquidity crisis, rejecting labour’s allegations of institutional extortion

Power generation companies under the Association of Power Generation Companies (GenCos) have disclosed that unpaid invoices for electricity supplied to Nigeria’s national grid have surged to approximately N6 trillion, raising urgent concerns over the sustainability of electricity supply in the country.

Also read: FG to Share Electricity Subsidy Costs Across All Tiers

The GenCos, comprising over 20 member firms, issued a statement on Wednesday, rejecting allegations by the Nigeria Labour Congress (NLC) that electricity companies were engaged in “institutionalised extortion.”

Joy Ogaji, Chief Executive Officer of the association, described the claims as a misrepresentation of the sector’s deep-rooted liquidity challenges.

“While we acknowledge the frustrations of Nigerians regarding unstable power supply, we must firmly reject the NLC’s characterisation of the sector’s challenges,” Ogaji said.

She added that describing the operations of power firms as robbery or a grand deception undermined ongoing efforts to stabilise Nigeria’s electricity market.

The association highlighted that generation companies, entitled to roughly 60 per cent of market receivables, are the most exposed in the electricity value chain.

The escalating debt, driven by revenue shortfalls and weak remittances, has limited their capacity to fund maintenance, fuel procurement, and expansion projects.

The GenCos emphasised their willingness to undergo scrutiny, offering their financial records for forensic audits if necessary. The statement also dismissed claims that government support for the sector was politically motivated, calling such suggestions “baseless and offensive.”

The association urged the NLC to engage constructively with stakeholders to address structural weaknesses, warning that persistent misrepresentation could deter investment and worsen Nigeria’s power shortages.

The latest dispute follows comments by NLC President Joe Ajaero, who accused electricity firms of exploiting Nigerians through tariff adjustments and alleged hidden subsidies.

Labour had also threatened industrial action, heightening concerns over the stability of the country’s electricity supply.

Experts warn that without urgent policy interventions to resolve the liquidity crisis, Nigeria risks further declines in power generation, potentially affecting industrial growth and economic productivity.

Also read: Nigeria Raises N501bn to Settle Electricity Sector Debts

The GenCos said they remain committed to sustaining electricity generation but stressed that coordinated reforms are essential to restore investor confidence and stabilise the sector.