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GenCos Raise Alarm Over N6tn Electricity Debt

Power generation companies in Nigeria have revealed that unpaid electricity bills for supply to the national grid have climbed to nearly N6 trillion, sparking new fears about the future stability of power supply in the country.

Operating under the Association of Power Generation Companies, the firms blamed the mounting debt on persistent revenue gaps and poor remittances across the electricity value chain. They warned that the situation is limiting their ability to fund critical operations such as equipment maintenance, fuel purchase, and capacity expansion.

The companies also dismissed recent claims by the Nigeria Labour Congress, accusing electricity providers of exploiting consumers. According to the association’s Chief Executive Officer, Joy Ogaji, such allegations overlook the sector’s underlying financial crisis.

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She noted that although Nigerians are frustrated by erratic power supply, branding the activities of power firms as exploitative fails to reflect the structural challenges confronting the industry.

The group explained that its more than 20 member companies are among the most financially exposed in the sector, as they are entitled to a significant portion of market revenues but continue to grapple with delayed payments for electricity already generated and delivered.

Despite the concerns raised, the companies stated that they are open to independent scrutiny and are willing to subject their financial records to forensic auditing if required, urging stakeholders to focus on addressing the root causes of the sector’s ongoing liquidity problems.

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