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GenCos cry out over N3.7trn debt in Nigeria’s electricity sector

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Power generation companies in Nigeria, GenCos, Sunday raise the alarm over the imminent collapse of their operations following a huge debt of N2 trillion and an estimated funding gap of N1.7 trillion contained the 2024 Multi-Year Tariff Order.

The companies said so far only about 10 percent of its monthly invoices for power supplied to the national grid are being paid.

According to him, “Notwithstanding this and other severe difficulties the GenCos have battled with since takeover in 2013, they have kept to the terms of their contractual agreements by ramping up capacity which has largely suffered systemic constraints. “GenCos are currently owed over two trillion Naira for power they generated, put unto the national grid, and consumed by end users. This is in addition to the over 1.7 trillion naira, funding gap created in the recent supplementary MYTO order 2024 without a designated fund to fill the gap. This huge debt outlay is now greatly inhibiting GenCos ability to meet their obligations to lenders, O&M operations, necessary maintenance, spare parts procurements, and employee-related obligations etc.

 

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