Nigerian GenCos report N6 trillion in unpaid electricity bills, cite liquidity challenges, reject extortion claims

Power generation companies in Nigeria, under the Association of Power Generation Companies, have disclosed that outstanding unpaid invoices for electricity supplied to the national grid have reached approximately N6 trillion.

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The rising debt is straining the financial capacity of the companies to invest in maintenance, fuel procurement, and infrastructure expansion.

The Chief Executive Officer of the association, Joy Ogaji, rejected claims by the Nigeria Labour Congress that the sector engages in institutional extortion, describing the allegations as a misrepresentation of the deep-rooted liquidity challenges affecting power supply.

The GenCos, which consist of more than 20 member companies, stressed that unpaid invoices are their main financial risk in the electricity value chain.

They are open to forensic audits and called for constructive engagement with stakeholders to address structural weaknesses in the sector.

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The association warned that continued misrepresentation of the sector’s financial realities could discourage investment and worsen electricity shortages.

They emphasized the urgent need for policy actions to restore investor confidence and stabilize the market.