• Home
  • News
  • Politics
  • Business
  • Entertainment
  • Education
  • Health
  • Opinion
  • Sports
  • About
  • Advertise
  • Privacy Policy
Wednesday, August 13, 2025
  • Login
No Result
View All Result
NEWSLETTER
Elanza News
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Education
  • Health
  • Opinion
  • Sports
  • About
  • Advertise
  • Privacy Policy
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Education
  • Health
  • Opinion
  • Sports
  • About
  • Advertise
  • Privacy Policy
No Result
View All Result
Elanza News
Home Business

GenCos Ask FG, Stakeholders To Pay N4trn Electricity Debt

Ojimaojo Abubakar by Ojimaojo Abubakar
April 15, 2025
in Business, News
0
Millions of Nigerians plunged into darkness as National grid collapses again
0
SHARES
0
VIEWS
FacebookTwitterWhatsappEmailTelegram

The electricity power generation companies (GenCos) have warned that the over N4 trillion unpaid invoices owed by the federal government and stakeholders for electricity generated threatens their operations.

In a statement on Monday, signed by Sani Bello, chairman of board of trustees, Association of Power Generation Companies (APGC), the GenCos asked the federal government and key stakeholders to urgently address the issue.

RelatedPosts

APC Berrates Governor Kefas to Uphold Constitution Over Deputy Governor’s Absence

BREAKING: Court Clears Ibom Air Passenger

Sokoto GBV RT Demands Immediate Justice For Brutalized 14 Year Old Bashariya 

According to the association, the issue is currently threatening the continued operation of their power generation plants.

“It is no more news that the power generation companies (GenCos) have continued to bear the brunt of the liquidity crisis in the Nigerian Electric Supply Industry (NESI),” the statement reads.

The association said they have made large-scale investments and have continued to demonstrate commitment by increasing capacities that align with their contract, spanning over 10 years.

The GenCos said expectations of being settled through external support such as “the World Bank PSRO has also been dampened due to other market participants’ inability to meet their respective distribution linked indicators (DLI), enshrined in the Power Sector Recovery Program (PSRP)”.

Moreso, they said the 2024 payment collection rate dropped below 30 percent, and “2025 is not any better, severely affecting GenCo’s ability to meet financial obligations”.

“Tax and Regulatory Challenges: High corporate income tax, concession fees, royalty charges, and new FRC compliance obligations are further straining GenCos’ revenue,” the GenCos said.

ALSO READ:  NAFDAC Officials Harassed By Hoodlums In Abuja

“Outstanding Payments: GenCos are currently owed about N4 trillion (N2 trillion for 2024 and N1.9 trillion in legacy debts). No possible solutions, including cash payments, financial instruments, and debt swaps, are in sight.

“Budget Allocation Concerns: The 2025 government budget allocates only N900 billion, raising concerns about its adequacy to cover arrears and future payments.”

Furthermore, the group said that liquidity challenges are further worsened by the various policies introduced.

As a result of the policies, the association said “no one is under pressure to ensure GenCos invoices are fully settled”.

“The implication of this is that GenCos only get paid a portion of their invoices (9%, 11%) from whatever amount is left,” the association said.

The GenCos demanded immediate implementation of payment plans to settle all outstanding GenCos invoices.

“Reprioritization of payments under the waterfall arrangement to give full priority to a hundred percent payment of GenCos’ invoices as at when due. A clear financing plan to backstop the exposures in the NERC’s Supplementary Order to the MYTO and the DRO 2024,” the association said.

They also requested the provision of payment security backed by the World Bank and the African Development Bank (AfDB) to guarantee full payment to GenCos to enable them to meet their critical needs, ensuring adequate generation and expansion.

The GenCos urged the federal government to liberalise the market to create confidence and ensure the viability and creditworthiness of the power sector.

Also, the association demanded “full effectiveness of all market agreements, firm monitoring, and enforcement of the rules by the regulator on all market participants”.

ALSO READ:  2023; Kukah Centre Partners European Union Trains Political Parties On Elections and Technology

In light of the severity of the issues, the GenCos requested that immediate action be taken to prevent national security challenges due to their failure to sustain Nigerians’ steady electricity generation.

Tags: electricity
Ojimaojo Abubakar

Ojimaojo Abubakar

Abubakar Ojimaojo is a graduate of Mass Communication, political and football analyst currently work at elanzanews.ng as Editor. He pride himself as skilled wordsmith with a passion for delving into contemporary political issues on both national and international scale.

Related Posts

APC Berrates Governor Kefas to Uphold Constitution Over Deputy Governor’s Absence

APC Berrates Governor Kefas to Uphold Constitution Over Deputy Governor’s Absence

by Nathaniel Irobi
August 13, 2025
0

By Nahum Sule, Jalingo The All Progressives Congress (APC) in Taraba State has accused Governor Dr. Agbu Kefas of allowing...

BREAKING: Court Clears Ibom Air Passenger

BREAKING: Court Clears Ibom Air Passenger

by Nathaniel Irobi
August 13, 2025
0

An Ikeja Magistrate Court sitting in Ogba, Lagos State on Wednesday, discharged Comfort Emmanson, the passenger accused of unruly behaviour...

Sokoto Boost Mass Transit With Additional 30 Buses, Commence Online Booking

Sokoto GBV RT Demands Immediate Justice For Brutalized 14 Year Old Bashariya 

by Nathaniel Irobi
August 13, 2025
0

By Ankeli Emmanuel The Sokoto State Chapter of Gender Based Violence/ Child Protection Response Team (SGBV/RT Tuesday appealed to the...

Recommended

JUST IN: Passenger Who Assaulted Ibom Air Staff Detained at Kirikiri

JUST IN: Passenger Who Assaulted Ibom Air Staff Detained at Kirikiri

2 days ago
Africa’s Women’s Day: Nigerian employers urged to hire more women

Africa’s Women’s Day: Nigerian employers urged to hire more women

7 hours ago

Popular News

  • Cross River State Triumphs at Prestigious All-women Interstate Debate

    Cross River State Triumphs at Prestigious All-women Interstate Debate

    0 shares
    Share 0 Tweet 0
  • BRGIE Acting Prime Minister Provides Explosive Testimony to U.S. Congress Calling For Release of Mazi Nnamdi Kanu & Simon Ekpa

    0 shares
    Share 0 Tweet 0
  • Haske: The Rise Of A New Movement

    0 shares
    Share 0 Tweet 0
  • Rahila Bags Presidential’s NYSC Honours Award For Community Service

    0 shares
    Share 0 Tweet 0
  • Intrigues and Political Uncertainty over 2027 APC Governorship Candidate for Taraba 

    0 shares
    Share 0 Tweet 0

Connect with us

Facebook Instagram Twitter Youtube
Elanza logo

Elanza News is your NO 1 online platform for all news update.
#SayNoToFakeNews
Contact Us

Category

  • Arts & Literature (25)
  • Business (759)
  • Education (222)
  • Entertainment (314)
  • Health (200)
  • National (2,298)
  • News (8,514)
  • Opinion (312)
  • Politics (1,677)
  • Science (15)
  • Security (407)
  • Sports (460)

Newsletter

© 2023 Elanza News - The No 1 online news platform

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Politics
  • Business
  • Science
  • National
  • Entertainment
  • Sports
  • Health

© 2023 Elanza News - The No 1 online news platform