By Seun Ibiyemi
Power generation companies in Nigeria have raised fresh concerns over mounting operational challenges tied to a staggering N6.8 trillion debt burden, warning that the situation is putting increasing strain on electricity supply across the country.
The concerns were expressed by Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, during an interview with journalists on Tuesday in Lagos.
Ogaji said operators in the power generation segment were grappling with both financial and operational pressures, with some generation units already experiencing constraints.
“We have not shut down, but some units are going offline progressively, not only due to gas supply issues, but also maintenance and funding challenges,” she said.
She explained that recent fluctuations in electricity supply reflected deeper structural issues within the sector, including infrastructure demands, outstanding payments and workforce-related pressures.
“Operators are working to sustain operations, but the current financial obligations have created constraints across the value chain,” she added.
According to her, the N6.8 trillion debt comprises outstanding invoices for electricity generated since 2015, capacity payments, foreign exchange differentials and accumulated interest.
Ogaji disclosed that ongoing engagements between GenCos and the Nigerian Bulk Electricity Trading Company are focused on reconciling the outstanding obligations.
“The last reconciliation with NBET was in March 2025, and discussions are continuing to reach alignment on the figures,” she noted.
She further highlighted that several operational costs are not adequately captured in current electricity tariffs, including expenses related to plant start-ups and shutdowns, ancillary services and the Free Governor Mode of Operation (FGMO).
The GenCos boss also pointed to gas supply challenges and transmission constraints as factors affecting plant utilisation levels across the country.
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Despite the difficulties, Ogaji expressed optimism that the issues could be addressed through sustained collaboration among key stakeholders in the power sector.
“The focus remains on strengthening the sector through coordinated action and adherence to established frameworks,” she said.
She emphasised the need for continuous efforts to improve operational efficiency, maintain critical infrastructure and ensure the long-term sustainability of Nigeria’s electricity supply industry.
