Power generation companies under the Association of Power Generation Companies (GenCos) have revealed that outstanding unpaid invoices for electricity supplied to Nigeria’s national grid have surged to approximately N6 trillion, raising fresh concerns about the sustainability of power supply in the country.
The association said the growing debt, driven by revenue shortfalls and weak remittances across the electricity value chain, has severely constrained generation companies’ capacity to invest in maintenance, fuel procurement, and infrastructure expansion.
In a statement on Wednesday, the GenCos CEO, Joy Ogaji, rejected allegations by the Nigeria Labour Congress (NLC) that power firms were engaged in “institutionalised extortion,” calling the claims a “simplistic and inflammatory narrative” that misrepresented the deep-rooted liquidity challenges facing the sector.
Ogaji said, “While we acknowledge Nigerians’ frustrations regarding unstable power supply, we must firmly reject the NLC’s characterisation of the sector’s challenges. To label the legitimate operations of power firms as robbery and grand deception is a misrepresentation of the facts and a disservice to ongoing efforts to stabilise Nigeria’s electricity supply industry.”
The GenCos explained that over 20 member companies are the most financially exposed players in the electricity value chain, entitled to about 60% of market receivables from invoiced energy bills. “Outstanding unpaid invoices now exceed six trillion (N6tn) naira,” the statement added.
The association also emphasised that its financial records are open to scrutiny and forensic audits, if necessary. It dismissed suggestions that government support for the sector was a covert political arrangement ahead of elections, describing such claims as “baseless and offensive.”
“Persistent misrepresentation of the sector’s financial realities could discourage investment and worsen power shortages. GenCos deserve pity and not castigation, ridicule, and victimisation,” the statement said.
The GenCos urged labour to engage constructively with stakeholders, noting that coordinated reforms are required to address longstanding structural weaknesses.
The statement comes in response to recent comments by NLC President Joe Ajaero, who accused electricity firms of exploiting Nigerians through tariff adjustments and alleged hidden subsidies, while threatening industrial action.
Since privatisation in 2013, Nigeria’s electricity industry has struggled with chronic liquidity shortfalls caused by revenue gaps, tariff inconsistencies, and market inefficiencies. Experts warn that unless these challenges are addressed, the country could face further declines in power supply, adversely affecting industrial growth and economic productivity.
The GenCos reaffirmed their commitment to sustaining electricity generation but stressed the urgent need for policy interventions to restore investor confidence and stabilise the sector.
