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The Federal Government has assured power generation companies (Gencos) that steps are being taken to offset the N4.7 trillion debt owed to them to prevent a nationwide blackout.
Concerns have been raised over the liquidity crisis in the sector, with some Gencos struggling to sustain operations due to unpaid invoices. Gas-fired power plants are particularly affected, as they face difficulties in paying gas suppliers for feedstock.
Minister of Power, Adebayo Adelabu, through his media aide Bolaji Tunji, reaffirmed the government’s commitment to settling the debts and ensuring no power plant shuts down. He emphasized that discussions are ongoing to secure payment solutions for both Gencos and gas suppliers.
According to industry data, from January to December 2024, Gencos issued invoices worth N2.7 trillion, but only N762.1 billion was paid, leaving an outstanding balance of N1.94 trillion. The unpaid debts continue to accumulate at a rate of over N200 billion per month.
Operators warn that without urgent intervention, many power plants may halt operations, worsening the nation’s power crisis. Some Gencos, such as Transcorp Power and Geregu, have reported profits, but these earnings remain locked due to delayed government payments.
Despite these financial struggles, the government insists that the issue is receiving top priority, with ongoing interventions to keep power plants running. The power sector’s N900 billion budget for 2025, however, has raised concerns about how the massive debt will be cleared.
“We are always intervening. I can assure you that no power plant will shut down because of this. The minister has already made a case for settling the outstanding payments,” the statement from the Power Ministry read.
