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Tag: GENCOs

  • A promise kept

    A promise kept

    • Still, to strengthen the power sector, GenCos should enjoy a more market-structured payment system

    In what could prove a systemic boost to the power sector – and a lift for the economy and sundry socio-economic prospects from constant electricity – the Tinubu administration just posted a bond to offset the arrears of debts owed the power generating companies (GenCos).

    It is the 100% subscription of an inaugural tranche, of a power sector bond, to pay GenCos rocking under heavy debt: some of it for power supplied as far back as 2015! This intervention is highly welcome.  It is also highly laudable.  Sometime last year, power minister, Adebayo Adelabu, echoing a presidential promise, had pledged to clear a substantial part of the debt.  This, therefore, is a promise kept – bravo – but just as well!

    The bond – which just hauled in N501 billion – is courtesy the Presidential Power Sector Debt Reduction Programme (PPSDRP).  It was drawn from banks, pension funds, asset managers and sundry investors.  Though the bond is just enough to offset half of the legacy GenCo bill, the payment should add fillip to the Nigerian Electricity Supply Industry (NESI) to further drive this all-important spark of the economy.  Electricity makes a difference between the sparkling day against the stark economic night.

    A further breakdown shows that the tranche comprises N300 billion, raised from the capital market.  Added is a further N201 billion in bonds, given to partner GenCos: making a total of N501 billion, in new liquidity.  The payments would be made for electricity received, and duly verified, between February 2015 and March 2025 – a 10-year period.

    Again, this is smart public debt tackling a grave public emergency.  It thus bypasses possible budgetary votes, which may take eons to accumulate, given the government’s not-so-bright revenue profile, even as new debts pile up.  How could the power sector have survived such a crushing debt burden?  That again toasts the creativity of the innovation.

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    Prior to posting the bond, the GenCos had agreed on settlement claims with the Nigerian Bulk Electricity Trading Plc (NBET), under the aegis of negotiated settlements.  The final settlements stand at N827.16 billion.  The agreed phases of payment are four instalments.  But the bond will only pay two of the four: N421.42 billion, from the owed N827.16 billion.  By the terms of the deal, payment would be made by cash and notes.  The benefiting GenCos are: First Independent Power Limited (FIPL), Niger Delta Power Holding Company (NDPHC), Mabon Power Limited (MPL), Geregu Power Plc (GP) and Ibom Power Company Limited (IPC).  These GenCos run 14 power plants nationwide.

    Though the bond only defrays 50% of certified debts – suggesting some follow-up tranches – the prospects to settle long-term debts are exciting top industry players.

    “Capital formation can only come when there is confidence, when you can truly see a line of sight in recovering investments previously made,” Kola Adesina, Group CEO of the Sahara Power Group, which runs five power plants, told ‘Premium Times’. “Because we are being owed so much, it was a bit of a problem for us to put in more money.”  That shows bright prospects of further investments on the power front.  He hinted the Sahara Group would proceed on a Phase 2 upgrade of its Egbin Plant.  For now, things appear looking up on the power horizon.  That’s good news for the economy.

    On his campaign stump, President Bola Tinubu had committed the All Progressives Congress (APC) to sorting out the power mess.  How far the administration has gone on that lane is still a subject of public debate.  But that the government is going for the jugular, by bolstering the weak payment infrastructure of the sector, is a thing to cheer.

    Still, inasmuch as all these deserve praise, they would mean little if they did not open the gate for a new era of a more structured, far more predictable, far less shambolic and much more sustainable payment system.  Only a routine seller-buyer prompt payment can ensure that.  So, the present bond arrangement should push towards that predictable threshold.  Otherwise, in the long run, it might all end a wasted effort.

    Besides, the Federal Government cannot seriously pull this off without, once and for all, taking care of the prodigal son at the base of the power chain: the power distribution companies (DisCos) and their state variants.  Unless and until DisCos are made to meter everyone, and not to play hanky-panky with “installation costs” – a euphemism for wilful sabotage by an over-pampered corporate child – prompt selling and buying can’t be routine in the power market.

    Indeed, were the Federal Government itself not to have some minority stakes in some GenCos, many of them would probably have been history.  If the primary power producers are not sure of their revenue, how can we even dream of constant electricity?

    It’s a good restart, this bond initiative.  But the power market must eventually pay its way, without any government intervention.

  • FG sets up committee to clear GenCos’ outstanding debts

    FG sets up committee to clear GenCos’ outstanding debts

    The Federal Government has constituted a committee to address the payment of outstanding debts owed to Power Generation Companies (GenCos) and to establish sustainable payment mechanisms to prevent future accumulation.

    Mr Mahmuda Mamman, Permanent Secretary, Ministry of Power, disclosed this on Monday in Abuja at the 10th Anniversary celebration of the Association of Power Generation Companies of Nigeria (APGC).

    The event, themed “A Decade of Powering Progress, Driving Nigeria’s Energy Transformation,” brought together key stakeholders from across the power sector to reflect on achievements and challenges over the past decade.

    Mamman, represented by Mrs Evangeline Babalola, a Director in the Ministry, said the committee’s mandate was not only to clear existing debts but also to ensure financial sustainability in the power sector.

    “In recognition of the critical importance of resolving this issue for the sustainability of our power sector, Mr President has constituted a committee specifically mandated to address the payment of outstanding debts owed to the GenCos,” he said.

    He praised the GenCos for their resilience and patriotism despite being owed billions of naira, noting that their continued operations have kept the nation’s lights on and the economy running.

    “You have not abandoned your posts in spite of severe liquidity challenges that would have forced closure in any other industry. This is not just business; this is patriotism in action,” Mamman said.

    He added that President Bola Tinubu was aware of the liquidity constraints facing the Nigerian Electricity Supply Industry (NESI) and was committed to finding lasting solutions to the debt burden.

    “As we work to resolve the debt situation, I encourage you to maintain the same spirit of resilience and commitment that has characterised your operations over the past decade,” Mamman said.

    He commended GenCos for their contributions to job creation, training of Nigerian engineers and technicians, and for supporting local economies where their plants operated, describing their efforts as “invaluable and recognised.”

    On his part, Sen. Enyinnaya Abaribe, Chairman, Senate Committee on Power, said the transformation witnessed in the power sector over the past decade had been both challenging and inspiring.

    He commended APGC for navigating complex regulatory environments and serving as a bridge between GenCos and key stakeholders across the electricity value chain.

    “Through persistent engagement and strategic advocacy, the association has shaped discourse around energy security, investment attraction, and operational sustainability within the power generation landscape,” Abaribe said.

    Read Also: Fed Govt, GenCos agree on payment of N4tr debt

    He added that in spite of persistent challenges such as infrastructure deficits, tariff issues, and gas supply constraints, APGC had continued to provide a platform for collective problem-solving and unified advocacy.

    Earlier, Mrs Joy Ogaji, Chief Executive Officer of APGC, said the association had over the past 10 years built strong partnerships and advocated for policies that promoted sustainability and transparency in the power sector.

    “From humble beginnings, APGC has grown into a respected, results-driven association that unites generation companies under a common purpose, to power Nigeria’s future sustainably and responsibly,” she said.

    Ogaji noted that in spite of recurring liquidity challenges, gas shortages, and grid limitations, GenCos remained determined to drive Nigeria’s energy transformation through persistence, collaboration, and reform advocacy.

    “This anniversary is not just a celebration of where we are, but a call to action for where we must go, toward a viable, transparent, and truly market-driven power sector,” she added.

    (NAN)

  • Fed Govt, GenCos agree on payment of N4tr debt

    Fed Govt, GenCos agree on payment of N4tr debt

    The Federal Government has finalised implementation frameworks for N4 trillion in government-backed bonds to settle verified arrears owed to power generation companies (GenCos) and gas suppliers.

    The Special Adviser to the President on Energy, Olu Verheijen, disclosed this in a statement signed by the Head of the media and communications unit in the SA’s office, Senan Murray, yesterday.

    The meeting was attended by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, Minister of Power, Bayo Adelabu, and Ms Verheijen.

    According to the statement, the agreement was reached at a meeting between federal government officials and the senior executives of GenCos to review settlement modalities for the outstanding debt.

    “The meeting concluded with a consensus on the way forward, which includes conducting bilateral negotiations to finalise full and final settlement agreements that balance fiscal realities with the financial constraints of the GenCos.

    “This intervention- the largest in over a decade, addresses a legacy debt overhang that has constrained investment, weakened utility balance sheets, and hindered reliable power delivery across the country. “

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    This is a major step by the Federal Government toward restoring financial stability and investor confidence in the electricity market,” the statement said.

    It explained that the agreement followed a landmark initiative approved by President Bola Tinubu and the Federal Executive Council (FEC) to address structural bottlenecks and lay the groundwork for large-scale private sector-led investment and sustained economic growth.

    According to Murray, at the meeting, Ms Verheijen said the Federal Government’s focus was on creating the right conditions for investment by modernising the grid, improving distribution and scaling embedded generation. The step would also help in closing metering gaps, aligning tariffs with efficient costs, improving subsidy targeting to support the poor and vulnerable, and restoring regulatory trust.

    “The sector is shifting from crisis response to sustained delivery and building the confidence needed to attract large-scale private capital,” she said.

    Also at the meeting, Edun said the reforms were beyond liquidity, as it would help in “rebuilding the fundamentals so that Nigeria’s power sector works for investors, for citizens and for the next generation.

    “This is how we create the enabling conditions for sustained private investment and transform reliable power into a catalyst for economic growth. Complementary efforts to scale renewable energy, leverage domestic gas as a transition fuel, and build local technical and institutional capacity will position Nigeria not just for energy security, but for energy sovereignty, creating one of Africa’s most attractive power markets,” he said.

    The Chairman of Heirs Holdings and Transcorp Power, Tony Elumelu, noted that for the first time in years, the sector is seeing a credible and systematic effort by the government to tackle the root liquidity challenges in the power sector. He commended President Tinubu and his economic team for the bold and transformative step.

    Speaking in the same vein, Goup Managing Director of Sahara Power Group, Kola Adesina said the initiative was significant in every respect.

    According to him, it renews confidence in the reform process and is a clear signal that the government is serious about building a sustainable power sector. Adesina noted that, beyond clearing arrears, the debt reduction plan signalled a strategic reset of Nigeria’s electricity market. The Presidential Power Sector Debt Reduction Plan is being jointly implemented by the Federal Ministry of Finance, the Federal Ministry of Power, and the Office of the Special Adviser to the President on Energy, in collaboration with the Nigerian Bulk Electricity Trading (NBET) Plc and other key stakeholders.

  • Fed Govt, GenCos seal framework for ₦4trn power sector debt reduction plan

    Fed Govt, GenCos seal framework for ₦4trn power sector debt reduction plan

    The Federal Government has finalised the implementation framework for the ₦4 trillion Presidential Power Sector Debt Reduction Plan, marking a decisive step toward restoring financial stability and investor confidence in Nigeria’s electricity market.

    The plan, approved by President Bola Ahmed Tinubu and endorsed by the Federal Executive Council in August 2025, authorises the issuance of government-backed bonds to settle verified arrears owed to generation companies (GenCos) and gas suppliers — the largest financial intervention in the power sector in more than a decade.

    The development followed a high-level meeting held on October 7 in Abuja between the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Minister of Power, Chief Bayo Adelabu; and the Special Adviser to the President on Energy, Mrs. Olu Verheijen, alongside senior executives of Nigeria’s GenCos. 

    The session reviewed settlement modalities and reached a consensus on a framework for bilateral negotiations to finalise full and final payment agreements balancing fiscal realities with GenCos’ financial constraints.

    A statement by the Head of the Media and Communications Unit of the Office of the Special Adviser to the President on Energy, Senan Murray, said the initiative aims to clear long-standing arrears that have crippled investment, weakened utility balance sheets, and limited reliable power delivery across the country.

    “For the first time in years, we are seeing a credible and systematic effort by government to tackle the root liquidity challenges in the power sector. We commend President Tinubu and his economic team for this bold and transformative step”, said Mr. Tony Elumelu, Chairman of Heirs Holdings and Transcorp Power.

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    Echoing similar optimism, Mr. Kola Adesina, Group Managing Director of Sahara Group, described the move as “significant in every respect,” adding that it “gives renewed confidence in the reform process and signals that government is serious about building a sustainable power sector.”

    According to Mrs. Verheijen, the Tinubu administration’s focus is on “creating the right conditions for investment, from modernising the grid and improving distribution to scaling embedded generation.

    “By closing metering gaps, aligning tariffs with efficient costs, improving subsidy targeting to support the poor and vulnerable, and restoring regulatory trust, we are shifting from crisis response to sustained delivery. This is how we build the confidence needed to attract large-scale private capital”, she said.

    Finance Minister Edun described the initiative as a fundamental reform beyond mere liquidity intervention. 

    “These reforms go beyond liquidity. They are about rebuilding the fundamentals so that Nigeria’s power sector works for investors, for citizens, and for the next generation. This is how we create the enabling conditions for sustained private investment and transform reliable power into a catalyst for economic growth”, he said.

    The debt reduction plan complements ongoing efforts to expand renewable energy deployment, leverage domestic gas as a transition fuel, and strengthen local technical capacity — a combination the government believes will position Nigeria as one of Africa’s most attractive power markets.

    Implemented jointly by the Federal Ministry of Finance, the Federal Ministry of Power, and the Office of the Special Adviser to the President on Energy, in collaboration with the Nigerian Bulk Electricity Trading (NBET) Plc, the Presidential Power Sector Debt Reduction Plan is expected to unlock investment, modernise the grid, and drive inclusive economic growth across the country.

  • Fed Govt set to clear N4tr GenCos’ debt

    Fed Govt set to clear N4tr GenCos’ debt

    • Edun tables proposal before FEC

    Minister of Finance and Coordinating Minister of the Economy Wale Edun yesterday confirmed the presentation of a proposal to the Federal Executive Council (FEC) for the clearance of the N4 trillion debt owed to power generation companies (GenCos).

    Edun told State House reporters after the FEC meeting that he presented a memo on refinancing outstanding obligations in the electricity industry.

    He said: “I presented a memo on the all-important refinancing of the electricity sector’s outstanding obligations totalling N4 trillion.

    “Though the financing plan was not fully approved immediately, we have moved into implementation, led by the Debt Management Office and other experts.”

    Read Also: GenCos cry out as EERC reduces band A tariff

    The minister said the first phase of the process should be completed within three to four weeks, which will mark significant progress in resolving the debt.

    In April, the GenCos warned that the unpaid N4 trillion debt owed by the federal government and stakeholders for electricity generated threatens their operations.

    A breakdown of the debt includes N2 trillion for 2024 and N1.9 trillion in legacy debts.

    Also in May, Power Minister Adebayo Adelabu said the federal government may borrow to GenCos.

  • FG to settle N2tr of GenCos debts before end of year

    FG to settle N2tr of GenCos debts before end of year

    In its bid to pacify the electricity Generation Companies (GenCos) from shutting down their plants, the federal government has announced a plan to pay them N2 trillion of the N4 trillion debts owed to them between now and the end of 2025.

    The Minister of Power, Adebayo Adelabu, broke the news at the 2025 Ministerial Press Briefing Series in Abuja on Thursday.

    He said he was already discussing with the Minister of Finance, and the Coordinating Minister of the Economy, Mr. Wale Edun, who has pledged to settle the debt with budgetary allocation or guaranteed debt instruments as promissory notes.

    He explained that the promissory notes would be formidable enough for them to tender at the banks for immediate cash needs.

     The minister said, “And I can tell you that between now and the end of the year, we are going to pay close to N2 trillion out of this N4 trillion.

    “I have had discussions with the Minister of Finance and the Coordinating Minister of the Economy, who has promised that they working on the promissory note and once we have budget releases, cash payments will also be made.”

    Defending the existence of the subsidy and how the debt was accumulated, he said

    “We believe that the average energy cost today per kilowatt of power is about 170 Naira per kilowatt. But 85% of customers are still paying 60 Naira.”

    He added that the government has always paid a shortfall as subsidies to the operators.

    Adelabu said the debt accumulated from unpaid electricity subsidies, describing 50 per cent of it as legacy debt and the balance emanating from 2024 operations.

    Admitting the GenCos threatened to halt operations, he insisted that plans are underway to defray the debts gradually, even as the government cannot settle them at a go.

    Read Also: ‘Plans underway to offset N4tr GenCos debts’

    The minister said, “Let me first explain that these debts are unpaid subsidies of the Federal Government, which are due to the power-generating companies. Almost half of it was inherited, while about half of it came from 2024 operations, which is N4 trillion.

    “I agree with you, there was a publication in the papers where the companies threatened to shut down their plants.”

    On the steps to pay the debt, he said, “There are plans underway to make these payments. While I will not say it will be paid 100%, we will be paying it gradually. And the mode of payment is in two ways.

    “We have sub-budgetary provisions which will facilitate cash payment while we are discussing with generating companies to give them guaranteed debt instruments like a promissory note, which we will give to them to pay them or defray some of these debts. These promissory notes will be liquid enough for them to be taken to the banks for discounting if they need immediate cash injections. So, it is the combination of cash payment and promissory notes.”

    Adelabu recalled that the debt built up to N4 trillion because of government’s failure to meet the payment obligations regularly.

    He said in order to ensure it does not accumulate to an unbearable burden, the government has is discussing the payment.

    He however said before now, Nigerians were about 20 percent of energy costs. And government has always been subsidizing.

    Adelabu said the government power companies as the National Electric Power Authority (NEPA), Power Holding Company of Nigeria (PHCN) were almost supplying energy free of charge as it was subsidized almost 90 per cent.

    He said the firms were getting government subvention for subsidies.

    According to him, the present 11 DisCos are not charging cost reflective tariff and it has restricted investment in the sector.

    He said it is not enough to increase energy production without proportional demand for it.

    He said the GenCo makes losses when there is no demand for its energy.

    Details shortly…

  • ‘Plans underway to offset N4tr GenCos debts’

    ‘Plans underway to offset N4tr GenCos debts’

    The Ministry of Power yesterday said plans were on the way to offset the N4 trillion debt owed Power Generation Companies (GenCos) for electricity generated.

    Special Adviser on Strategic Communications and Media Relations to Minister of Power, Mr Bola Tunji said the Ministry of Power was collaborating with the Ministry of Finance on the options for resolution of the debt.

    Tunji was reacting to a statement by the GenCos appealing to the federal government and stakeholders in the power sector to settle more than N4 trillion debts owed them for electricity generated.

    He said Minister of Power is concerned and the issue is being discussed with the Ministry of Finance on how the debt must be paid.

    ”We expect the Ministry of Finance to take action on this soon. We are not unaware of this debt arising from the Federal Government’s commitment on subsidy. Part of the debts is legacy debts, which were on the ground before the minister of power assumed office.

    ”The minister has repeatedly harped on this, knowing the implication of such debts to the operations of the various power sector stakeholders, especially the GenCos ,” Tunji said.

    The News Agency of Nigeria (NAN) reports that the Association of Power Generation Companies (APGC), in a statement said that GenCos were currently owed N2 trillion for power supplied in 2024 and N1.9 trillion in legacy debt.

    Read Also: GenCos reel under N4tr debts

    The GenCos also noted that against the backdrop of the many challenges facing the power sector in Nigeria, the crises from

    cash liquidity are on the top burner and has reduced their ability to continue to perform their obligations.

    This according to a statement issued by retired Col Sani Bello, Chairman Board of Trustees of APGC, is threatening to completely undermine the electricity value chain.

    ”Besides being owed huge debts, the GenCos were also operating under very harsh monetary and fiscal conditions.

    ”It is no more news that the GenCos have continued to bear the brunt of the liquidity crisis in the Nigerian Electricity Supply Industry (NESI),” he said

  • GenCos reel under N4tr debts

    GenCos reel under N4tr debts

    • Power generators threaten shutdown

    Power generation companies (GenCos) yesterday warned of imminent shutdown of operations due to failure to settle more than N4 trillion invoices.

    Chairman, GenCos Board of Trustees (BoT), Col Sani Bello (rtd) in a statement said the group was constrained to raise the alarm to draw the attention of the federal government and key stakeholders to the need to urgently address the issue of inadequate payment for electricity generated by the GenCos.

    He said the unpaid electricity, which was  consumed on the national grid, is currently threatening the continued operation of GenCos’ power generation plants.

    According to him,  GenCos have continued to bear the brunt of the liquidity crisis in the Nigerian Electric Supply Industry (NESI).

    Bello said in the light of the severity of the issues, GenCos are requesting that immediate and expedited action to prevent national security challenges that may result from the failure of the companies to sustain steady generation of electricity for Nigerians.

    He noted that there have been declining payment rates with the 2024 collection rate dropping below 30 per cent, while worsening situation in 2025 is  severely affecting GenCos’ ability to meet financial obligations.

    He added that high corporate income tax, concession fees, royalty charges, and new FRC compliance obligations are further straining GenCos’ revenue.

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    “Outstanding payments: GenCos are currently owed about N2trillion-N4 trillion for 2024 and N1.9 trillion in legacy debts. No possible solutions, including cash payments, financial instruments, and debt swaps is in sight,” Bello said.

    According to him, the 2025 government budget allocates only N900 billion, raising concerns about its adequacy to cover arrears and future payments.

    He said the power generated by GenCos have continued to be consumed in full without corresponding full payment, notwithstanding the commencement of the partial activation of contracts in the NESI, which took effect from July 1, 2022.

    He listed challenges to include the minimum remittance order, bilateral market declaration, waterfall arrangement, the risks of inflation, foreign exchange (forex) volatility with no dedicated window to cushion the effect of the forex impact, the supplementary MYTO order which leaves about 90 per cent of GenCos monthly invoices unmet without a bankable securitisation, or financing plan.

    He said this situation has dire consequences for the GenCos and by extension the entire power value chain.

    Bello explained that GenCos as responsible investors with patriotic zeal have made large-scale investments and have continued to demonstrate absolute commitment by ramping capacities in line with their contract these 10 years.

    According to him, the GenCos have been operating amid system constraints, policies and  regulations that are not investors friendly, increasing debts owed by the federal government without a clear financing plan, lack of firm contracts and a market without securitisation but based on best endeavours, thereby hampering future planning.

    He noted that notwithstanding the challenges that 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 been largely constrained systemically.

    Bello said: “GenCos liquidity challenges is further worsened by the various policies introduced such as the payment waterfall in the NESI, which deprioritizes payment to GenCos as service providers such as MO/NISO, NERC and NBET /leaders all receive 100 per cent payment of their market invoices starting from May 2019.

    “As a result of this, no one is under pressure to ensure GenCos invoices are fully settled. The implication of this, is that GenCos only get paid a portion of their invoices-nine per cent, 11 per cent, from whatever amount is left.

    “This is an aberration as it is a clear departure from existing terms of the Power Purchase Agreement (PPA) guiding the contractual relationship between GenCos and the Nigeria Bulk Electricity Trading Plc (NBET), by which NBET as buyer has contracted to purchase the available capacity as agreed under the PPA.

    “GenCos should be accorded the utmost priority when it comes to payment to enable them to have the capacity to continue to produce the electricity which is the product around which the entire power value chain is built”.

    He pointed out that GenCos expectations of being settled through external support such as the World Bank PSRO has also been dampened due to other market participants’ inability to meet their respective distribution linked indicators (DLIs), enshrined in the Power Sector Recovery Program (PSRP).

    According to him, access to forex is another problem given that major operation and maintenance needs in the generation subsector are dollarized; thus the importance of a specialised window or stable dollar allocation option for the GenCos .

    He said GenCos were of the position that there is need for a coordinated approach by all stakeholders in the NESI to address the liquidity issue realistically and sustainably in the power sector so that Nigerians can have access to reliable electricity supply.

    “On the foregoing, we hereby demand the following to urgently put GenCos in a position to continue

    generating power for transmission and distribution to Nigerians:  Immediate implementation of payment plans to settle all outstanding GenCos invoices; reprioritization of payments under the waterfall arrangement to give full priority to a 100 per cent payment of GenCos’ invoices as at when due; a clear financing plan to backstop the exposures in the NERC’s Supplementary Order to the MYTO and the DRO 2024,” Bello stated.

    He outlined other demands to include the provision of payment security (guarantees) backed by World Bank/AFDB to guarantee full payment to GenCos, to enable them to meet their critical needs, improve generation to

    Nigeria and implement their respect growth and expansion plans; ensuring greater transparency in the billing, collection, and remittance process of sector funds; investors focused and economy growth friendly policies and regulations to incentivise investors; firm monitoring and implementation of the liberalisation of the market  to create market confidence and ensure the viability and credit worthiness of the power sector; ensuring full effectiveness of all market agreements, firm monitoring, and enforcement of the rules by the regulator on all market participants.

    Said he: “GenCos are of the position that the liquidity challenge threatening the continued operation of their power generation plants must be addressed urgently, and sustainably too. Besides being owed huge debts, the GenCos also are operating under very harsh monetary and fiscal conditions, occasioned by the economic realities that face the country today.

    “The flow of money within the power industry is one of the fundamental problem preventing Nigerians from enjoying continued and sustainable improvement in electricity supply. This would enable GenCos meet their critical needs which would, in turn, ensure that they sustainably generate power, so that Nigerians can have better access to reliable electricity supply. GenCos will like to re-emphasise that this request requires urgent attention”.

  • GenCos to Fed Govt: pay N2tr debt to avert national security challenges

    GenCos to Fed Govt: pay N2tr debt to avert national security challenges

    Electricity Generation Companies (GenCos) yesterday urged the Federal Government to pay its over N2 trillion outstanding debt to prevent national security challenges.

    The board’s chairman, Col. Sani Bello (retd.), said this in a statement in Abuja.

    The shortfall, Bello said, was threatening the companies’ operations.

    He said: “GenCos are currently owed over N2 trillion for power they generated, put unto the national grid, and consumed by end users.”

    Bello said aside the N2 trillion, there was an additional N1.7 trillion due to the funding gap created by the Supplementary Multi-Year Tariff Order (MYTO).

    Read Also: GenCos to FG: pay N2tr debt to avert national security challenges

    He said: “This is in addition to the over N1.7 trillion, funding gap created in the recent supplementary MYTO order 2024 without a designated fund to fill the gap.”

    Warning the government on the consequence of refusing to pay the debt, the GenCos boss called for a fast-tracked action to avert national security challenges.

    Bello said: “In the light of the severity of the issues highlighted above, the GenCos are requesting that immediate and expedited action is taken to prevent national security challenges that may result from the failure of the GenCos to sustain steady generation of electricity of Nigerians.”

    He added that the huge debt outlay was inhibiting GenCos’ ability to meet their obligations to lenders, Operation and Maintenance (O&M), operations, necessary maintenance, spare parts procurements, and employee-related obligations, among others.

  • FG flags-off project to deliver additional 624mw in FCT

    The Federal Government on Thursday kick-started the implementation of the construction of nine 330 KV lines to deliver additional 624mw to the Federal Capital Territory (FCT) and its environs,

    At completion, the project will add 1,380MVA transformer capacity that is expected to improve power transmission and supply within Abuja and its environs as well as positively impact the socio-economic well-being of the people.

    Speaking at the official groundbreaking ceremony in Dawaki-Abuja, the Permanent Secretary, Federal Ministry of Power, Dr. Louis Edozien, charged the Managing Director, Abuja Electricity Distribution Company (AEDC), Mr. Ernest Mupwaya and the Generation Company, to ensure optimal utilization of the facility when it is completed in the next two years.

    Edozien said that: “It is the distribution company that must play the role in taking this extra capacity and delivering it to customers. At the same time, the partnership also expects from the generation companies because if they don’t produce another 624mw, it is only the engineers that will at the end of two years admire the facility.”

    He noted that the ministry aimed at an end -to -end delivery of electricity, which requires a crucial role of the DisCo, recalling that the financing partner, AFD, was into a distribution projects that did not go well in the past.

    The Permanent Secretary insisted that it was “time now to reconsider a more purposeful and successful financing intervention at the distribution and retail end of the industry.”

    It is, however, an irony that the Transmission Company of Nigeria (TCN) is siting the project on the right of way of the high tension passing through Dawaki in Abuja.

    The company is presently weeding out all structures on the right of way through out the country with the support of the state governors.

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    The TCN Managing Director, Mr. Usman Gur Mohammed, noted that the project was to tackle the problem of electricity transmission in Abuja.

    He noted that the TCN saved about 25million from the procurement process of the project because the contractors were even ready to commence implementation before payment.

    According to him, Transmission Rehabilitation Expansion Programme, which TCN was implementing was on course as all the components that included the frequency control has been achieved 65 per cent.

    His words: “I am happy to tell you that as from achieved frequency control of 59.8 and 2Hz for 65% of the time from December 23 to date, being the best in the history of the country.”

    He said that the company was enforcing the free governor control, which was targeted at attaining the best frequency control in West Africa.

    He said that the TCN had also achieved the complete procurement of spinning reserve, which was undergoing the final consultation for the Nigeria Electricity Regulatory Commission (NERC) for approval and deployment.

    He added that the company had done everything possible to make the Supervisory Control and Data Acquisition (SCADA) work having fixed all the deficiencies that inhibited the achievement in the past.

    Mohammed said that the TCN has installed 40 transformers in the last two years, recovered 730 containers from the over 800 containers that were stranded in the ports.