Nigeria’s power generation companies (GenCos) yesterday marked a decade of electricity privatisation amid a worsening liquidity crisis and uncertainty over the payment of more than N4 trillion owed them by the Federal Government.
The event, held in Abuja by the Association of Power Generation Companies (APGC), was overshadowed by fresh concerns that the government’s promises to clear the legacy debts remain largely unfulfilled.
Top industry sources told The Guardian that despite recent government assurances, no concrete payment plan had been agreed upon, and key ministries had failed to respond to multiple requests for clarification.
While the Federal Government, through the office of the Special Adviser on Energy, last week said arrangements had been finalised with electricity companies regarding debt settlement, the source said no concrete agreement was reached.
He added that the government had not been straightforward about the debt, stressing: “The President had given assurances, but since then, the finance minister, Wale Edun, and the special adviser on energy have been evasive.”
The GenCos are owed more than N4 trillion in unpaid capacity and energy invoices by the Federal Government, while new arrears, driven by inadequate market remittances and tariff shortfalls, have risen to N1.6 trillion as of August 2025 and are projected to hit N2.2 trillion by December.
Speaking at the APGC anniversary, former Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr Sam Amadi, said the liquidity shortfall had become the “core weakness” of the privatisation exercise.
The Chairman of APGC’s Board of Trustees, Sani Bello, urged government and regulators to act decisively. Chairman of the Senate Committee on Power, Senator Enyinnaya Abaribe, commended APGC’s resilience over the past decade but admitted that unresolved structural and policy issues continue to undermine progress.
Minister of Power, Adebayo Adelabu, confirmed that a presidential committee had been constituted to develop a framework for clearing outstanding debts and preventing future accumulation.
