There is looming darkness in Nigeria as power generation companies threaten a showdown.
Electricity generation companies (GenCos) have warned of an imminent nationwide blackout over N4 trillion unpaid debts by the federal government and market operators. Retired Colonel Sani Bello, Chairman of GenCos’ Board of Trustees, revealed that N2 trillion is owed for 2024 power supply, while N1.9 trillion remains as legacy debt. “The power generated by GenCos has continued to be consumed in full without corresponding payment,” Bello stated, noting that current payments cover only 9–11% of invoices. The N900 billion allocated to the power sector in the 2025 budget was described as grossly inadequate to resolve the crisis.
GenCos highlighted a sharp drop in revenue collection—below 30% in 2024—and dollar-denominated operational costs as key challenges worsening Nigeria’s power crisis. Bello emphasized the need for “a specialised window or stable dollar allocation” to sustain operations, warning that liquidity constraints threaten their ability to meet obligations. The sector’s collapse could disrupt the entire electricity value chain, with GenCos accusing the government of violating Power Purchase Agreements. The looming shutdown raises fears of prolonged darkness unless urgent intervention is made to settle the staggering debts.
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