The amount being owed Power generation companies in Nigeria has risen to ₦3.7tn.
This, according to the companies is a threat to further electricity production.
Electricity producers under the aegis of the Association of Power Generation Companies drew the attention of the Federal Government and key stakeholders to the need to urgently address the issue of inadequate payment for electricity generated by GenCos and consumed on the national grid.
They said the inadequate payment is currently threatening the continued operation of their power generation plants, according to a statement issued in Abuja on Sunday by the Board Chairman, Power Generation Companies, Col. Sani Bello (rtd).
He added that gencos are currently owed over ₦2tn for the power they had generated, put onto the national grid, and consumed by end users. This is in addition to the over ₦1.7tn funding gap created in the recent supplementary MYTO order 2024 without a designated fund to fill the gap.
“This huge debt outlay is now greatly inhibiting Gencos’ ability to meet their obligations to lenders, necessary maintenance, spare parts procurements, employee-related commitments, etc.
“The Gencos’ expectations of being settled through external support such as the World Bank Power Sector Recovery Programme have also been dampened due to other market participants’ inability to meet their respective distribution linked indicators enshrined in the PSRP,” the firms stated
“Gencos are of the position that there is a need for a coordinated approach by all stakeholders in the NESI (Nigeria Electricity Supply Industry) to address the liquidity issue realistically and sustainably in the power sector so that Nigerians can have access to reliable electricity supply.
“In the light of the severity of the issues highlighted above, the Gencos are requesting that immediate and expedited action is taken to prevent national security challenges that may result from the failure of the Gencos to sustain steady generation of electricity for Nigerians.”
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