Nigeria GenCos Say Unpaid Electricity Invoices Hit N6tn, Reject NLC Extortion Claims
- Power generation companies say unpaid invoices for electricity have climbed to about N6 trillion
- The GenCos attribute the debt to revenue shortfalls and weak remittances within the power value chain
- The association rejected allegations by the Nigeria Labour Congress that firms are engaged in extortion
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Power generation companies in Nigeria have said that unpaid invoices for electricity supplied to the national grid have risen to about N6 trillion.
Source: Getty Images
The disclosure was made by the Association of Power Generation Companies, which represents electricity generation firms across the country. According to the group, persistent revenue shortfalls and weak remittances within the power value chain have significantly strained operators’ finances
As reported by PUNCH, the association’s Chief Executive Officer, Joy Ogaji, said the growing debt burden has limited the ability of generation companies (GenCos) to fund maintenance, purchase fuel, and expand capacity.
GenCos reject NLC’s allegations
The association was reacting to recent comments by the Nigeria Labour Congress (NLC), which accused electricity firms of engaging in “institutionalised extortion” and benefiting from alleged hidden subsidies.
Ogaji described the claims as inaccurate and inflammatory, stating that they overlook the structural liquidity challenges facing the sector.
“While we acknowledge the frustrations of Nigerians regarding unstable power supply, we must firmly reject the NLC’s characterisation of the sector’s challenges,” she said in the statement.
She stressed that the NLC’s label of the legitimate operations of GenCos as robbery is a misrepresentation of the facts.
The association added that allegations of phantom subsidies and extortion risk undermining ongoing efforts by stakeholders to stabilise the electricity market.
Over N6tn in unpaid invoices
According to the group, GenCos, which comprise more than 20 member companies, are the most financially exposed participants in the electricity value chain.
It stated that generation companies are entitled to about 60% of market receivables based on their invoiced energy, but unpaid invoices have now exceeded N6 trillion.
Nigeria privatised its power sector in 2013, but operators have continued to grapple with revenue collection gaps, tariff shortfalls and market inefficiencies. Industry analysts say these challenges have led to mounting debts owed to generation companies by bulk traders and distribution firms.
Open to audit, seek constructive engagement
The association said its members are open to scrutiny and would submit their books for forensic examination if required.
“If the NLC and any other institution find it necessary, 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 group also dismissed suggestions that government financial support to the sector was politically motivated ahead of elections, describing such insinuations as baseless.
It warned that continued misrepresentation of the industry’s financial realities could discourage investment and further weaken electricity supply.
Source: Getty Images
Labour threatens action
The latest exchange follows remarks by NLC President Joe Ajaero, who accused electricity firms of exploiting consumers through tariff adjustments and alleged subsidy arrangements. The labour union has threatened industrial action over the matter.
Experts have repeatedly cautioned that unless liquidity constraints are addressed, Nigeria risks further declines in power generation, with broader implications for economic productivity and industrial growth.
Despite several government interventions, including payment assurances and financing support schemes, the sector continues to face funding gaps that limit investment in infrastructure and capacity expansion.
The GenCos said they remain committed to sustaining electricity generation but urged policymakers and labour leaders to engage constructively to resolve longstanding structural issues in the industry.
FG raises N501bn bonds to clear electricity debt
Legit.ng earlier reported that the federal government raised N501 billion through bonds to address historic debts in the electricity sector.
The bond issuance aims to restore confidence and unlock investments in the troubled power market
The settlement programme could improve electricity service delivery for over 12 million customers
Source: Legit.ng
