Energy Era Corporations (GenCos) in Nigeria are urgent the federal authorities for a transparent and sustainable fee framework to handle the alarming N6 trillion debt burden suffocating the sector.
Regardless of a vital buyers’ assembly with the President on July 25, 2025, the Chief Government Officer of the Affiliation of Energy Era Corporations (APGC), Dr. Pleasure Ogaji, revealed that there stays “no readability on the bond issuance since July,” because the sector continues to bleed financially.
The delay and lack of transparency are exacerbating the liquidity disaster, threatening the business viability of energy technology companies and casting doubt on Nigeria’s skill to stabilise its electrical energy provide trade.
Dr. Ogaji emphasised the pressing want for a complete framework to deal with each legacy money owed and ongoing fee challenges to forestall additional collapse of the Nigerian energy sector.
In an unique interview with LEADERSHIP, Dr. Ogaji issued a candid appraisal of the unresolved {financial} crises plaguing the facility technology sector.
She mentioned that almost 4 months after a vital assembly with the President in July 2025, the GenCos remained in the dead of night about vital bond issuance plans meant to handle mounting {financial} pressures.
The debt disaster within the electrical energy market stems primarily from a continual liquidity shortfall that has plagued the facility sector for years.
GenCos and different energy sector gamers are owed large unpaid invoices and legacy money owed, which have ballooned to over N6 trillion by 2025 attributable to tariff shortfalls, weak income collections, and delays in authorities funds.
This {financial} pressure has precipitated gasoline suppliers to chop provide to some energy crops, additional destabilising the nationwide grid and pushing Nigeria to the brink of widespread blackouts. Efforts to alleviate the disaster have been hindered by an absence of readability and follow-up on authorities commitments, together with the proposed bond issuance to cowl the debt. Regardless of authorities guarantees and partial subsidies, the sector continues to endure from insufficient funding, operational inefficiencies, and unclear fee frameworks, resulting in an ongoing disaster of confidence amongst buyers and stakeholders in Nigeria’s electrical energy market.
“There is no such thing as a readability in any respect on the bond since July 25, 2025, when the GenCos’ buyers met with the President.
“We hear they’re engaged on it, however when will they end? When will it’s issued? We’re in November, and but there is no such thing as a readability. On condition that N4 trillion was allotted for 2024, an additional N2 trillion is accumulating with no seen sustainable plan to cease the haemorrhaging. There are extra questions than solutions,” she acknowledged.
The liquidity crunch and rising legacy money owed proceed to threaten the operational viability of GenCos, with Dr. Ogaji emphasising the pressing want for an efficient, complete framework by the federal authorities.
“What we want as GenCos is a design or framework that may cope with solvency — legacy debt — and liquidity — fee self-discipline,” she mentioned.
This framework, she defined, should shield energy technology firms from succumbing below the load of excellent money owed and unpaid dues within the Nigerian Electrical energy Provide Business (NESI).
Highlighting the sector’s dire {financial} state, Dr. Ogaji mentioned, “The Nigerian energy sector faces important challenges, together with insufficient liquidity, which hinders the flexibility of energy technology firms to function effectively and successfully, producing excellent money owed and threatening ongoing business viability.
“Fee options are required to cater for ongoing and legacy money owed and to enhance total market liquidity.”
She outlined the APGC’s priorities for presidency and trade intervention to incorporate debt evaluation and restructuring.
“We have to assess and restructure present and excellent money owed owed to and by the GenCos to boost restoration prospects,” she mentioned.
Ogaji referred to as for the event of strategic assist and negotiation frameworks to get better excellent money owed from earlier intervals.
In keeping with her, to mitigate fee dangers below present Energy Buy Agreements (PPAs), fiscal and regulatory mechanisms want restructuring.
“There should be danger allocation frameworks to make sure equitable distribution of economic dangers amongst all stakeholders,” Ogaji mentioned.
She additionally harassed the significance of creating efficiency enchancment plans aligned with strategic targets, together with integrating progressive fashions and rising developments in problem-solving strategies to maximise energy technology effectivity.
She asserted that an implementation roadmap for these options was vital to revive sector confidence and operational viability.
She cautioned towards superficial cures. “What we wish just isn’t box-ticking or knee-jerk options, however complete, strategic approaches that deal with particular wants of energy technology firms, enhancing their {financial} sustainability and operational effectivity.”
