Unpaid Electricity Bills Now N6tn – Gencos

Power generation companies under the umbrella of the Association of Power Generation Companies have disclosed that outstanding unpaid invoices for electricity generated and supplied to the national grid have surged to about N6tn, raising fresh concerns over the sustainability of power supply in Nigeria.

The group said the growing debt burden, driven by revenue shortfalls and weak remittances across the electricity value chain, has significantly strained the financial capacity of generation companies to invest in maintenance, fuel procurement, and expansion.

The power generation companies also strongly rejected allegations by the Nigeria Labour Congress that electricity firms were engaged in “institutionalised extortion,” insisting that the claims misrepresent the deep-rooted liquidity crisis threatening the country’s power sector.

The Chief Executive Officer of the association, Joy Ogaji, made the announcement in a statement on Wednesday in reaction to recent comments by the Nigerian Labour Congress. Ogaji accused labour of peddling a “simplistic and inflammatory narrative” that ignored the structural challenges facing the industry.

She said, “While we acknowledge the frustrations of Nigerians regarding the 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 a grand deception is a misrepresentation of the facts and a disservice to the ongoing efforts to stabilise Nigeria’s electricity supply industry.”

The GenCos said the remarks by labour, including allegations of phantom subsidy and institutional extortion, undermined ongoing efforts by stakeholders to resolve the liquidity crisis and ensure a stable electricity supply.

The association said the GenCos, consisting of over 20 member companies, were in fact the most exposed players in the electricity value chain, with outstanding unpaid invoices now exceeding N6tn.

According to the association, “The truth is that the power sector, over a decade after privatisation, remains hamstrung by severe liquidity challenges. It is a fact that GenCos, who are entitled to about 60 per cent of the market receivables following their invoiced energy bills, face the greatest risk in the electricity value chain, with outstanding unpaid invoices now over six trillion (N6tn) naira.”

The power firms insisted that they were open to scrutiny, stressing that their financial records could be subjected to a forensic audit if necessary. “If the NLC and any other institution find it necessary, let it be known that GenCo books are ready for any forensic examination. But the facts must be established and the real causes of the sector’s challenges identified,” the statement added.

The association also dismissed insinuations that government support for the sector was a covert political arrangement ahead of elections, describing such claims as “baseless and offensive to professionals working tirelessly in the industry.” It further warned that persistent misrepresentation of the sector’s financial realities could discourage investment and worsen power shortages.

“We also strongly refute the insinuation that proposed government support for the sector is a clandestine plan to settle the boys ahead of elections. Such claims undermine the critical liquidity interventions needed to keep the lights on.

“GenCos deserve pity and not castigation, ridicule, and victimisation. Trying to smear their image with such baseless and unfounded allegations is not only unfair but misleading to the Nigerian populace, giving the impression that the sector is not regulated and that electricity market participants can do as they please unchecked,” the association said.

The GenCos urged labour to engage constructively with industry stakeholders rather than escalate tensions, noting that the sector required coordinated reforms to address longstanding structural weaknesses.

The latest row follows recent comments by the President of the Nigeria Labour Congress, Joe Ajaero, who accused electricity firms of exploiting Nigerians through tariff adjustments and alleged hidden subsidies. The labour union had also threatened industrial action, raising fresh concerns over the stability of the country’s fragile power sector.