Nigeria’s Generation Companies (Gencos) have sounded the alarm over escalating debts owed by the Federal Government, which have now reached a staggering ₦5.2 trillion. This includes ₦1.2 trillion in fresh unpaid invoices from the first half of 2025, ₦2 trillion in legacy debts, and another ₦2 trillion in financial obligations accrued in 2024.
The development coincides with a newly implemented tariff reduction by the Enugu Electricity Regulatory Commission (EERC), lowering rates from ₦209 to ₦160 per kilowatt hour. The Federal Government is expected to cover the resulting subsidy.
Dr. Joy Ogaji, spokesperson for the Gencos, expressed concern over the implications of the revised tariff structure, warning that it sets a troubling precedent that other states may follow. She pointed out that only ₦45 out of ₦112 in the current tariff is designated for generation costs, a figure she says threatens the operational viability of electricity producers.
The decentralization of electricity regulation, with subnational governments assuming greater roles, could further complicate the landscape, particularly amid mounting financial instability.
Ogaji urged urgent intervention, noting that the current path could lead to unreliable power supply and erode investor confidence in the sector.
