According to Power Generation Companies (Gencos), the federal government owes them N1.2 trillion in the first half of 2025. The total amount of arrears approaching N5.2 trillion includes N2 trillion in legacy debts from 2015-2024 as well as N2 trillion from 2024.
he Association of Power Generation Companies (APGC) spokesperson, Dr. Joy Ogaji, expressed concern about the Enugu Electricity Regulatory Commission’s (EERC) recent tariff reduction from N209 to N160 per kilowatt-hour. This reduction only allots N45 for generation costs out of N112, suggesting possible problems for state-level power decentralization.
The government’s N900 billion 2025 power budget, according to Gencos, is inadequate and not cash-backed, which will worsen debt accumulation.
“This is a huge contagion that needs to be dealt with but at the presidency level. Recall that Gencos are currently owed about N4 trillion (N2 trillion for 2024 and N1.9 trillion in legacy debts, that is, 2015-2024, with an accumulated debt of N1.2 trillion for first half of 2025 alone.
“ There are no workable solutions, including cash payments, financial instruments, and debt swaps in sight at the moment. The 2025 government budget allocates only N900 billion, raising concerns about its adequacy to cover arrears and future deficits.
“The power generated by Gencos has continued to be consumed in full without corresponding full payment,” said Ogaji, who is the Executive Secretary of the Association of Power Generation Companies (APGC).
