Association of Power Generation Companies (APGC) has warned of an imminent shutdown of power generation plants due to unpaid invoices totalling over ₦4 trillion.
This debt comprises ₦2 trillion for 2024 and ₦1.9 trillion in legacy debts, severely impacting the companies’ ability to meet financial obligations.
According to a statement signed by Col. Sani Bello (Rtd), chairman Board of Trustee Power Generation Companies, on Monday said despite generating electricity consumed on the national grid, power generation companies haven’t received corresponding payments, leading to a liquidity crisis.
This crisis he said has reduced their ability to perform obligations, threatening the entire electricity value chain.
To address this crisis, the APGC has demanded immediate implementation of payment plans to settle all outstanding GenCos invoices.
The association also called for a reprioritization of payments under the waterfall arrangement, giving full priority to 100% payment of GenCos’ invoices as at when due. This would enable them to sustainably generate power and meet critical needs.
The APGC said A clear financing plan is also necessary to backstop exposures in NERC’s Supplementary Order to the MYTO and DRO 2024
This plan would provide stability and predictability for the power sector, allowing GenCos to plan and invest for the future.
Furthermore, the Association is seeking payment security guarantees backed by World Bank/AFDB to guarantee full payment to GenCos.
This would enable them to meet critical needs, improve generation, and implement growth and expansion plans.
