BREAKING: Nationwide Blackout Looms as Power Firms Threaten Shutdown Over N4 Trillion Debt
From Abdulwahab Muhammad Bauchi
Abuja, Nigeria – The nation is on the brink of a total power collapse as electricity generation companies (GenCos) warn of a looming nationwide blackout due to an overwhelming N4 trillion debt owed by the federal government.
In a statement released Monday, Colonel Sani Bello (Rtd.), Chairman of the Board of Trustees, Association of Power Generation Companies (APGC), revealed that the GenCos are owed N2 trillion for power supplied in 2024 alone, in addition to N1.9 trillion in long-standing legacy debts.
The GenCos, critical to Nigeria’s electricity supply chain, say they now receive less than 30% of monthly payments for power supplied to the national grid. They warn that without immediate intervention, their operations may be forced to shut down—plunging the country into darkness.
“Despite significant investments in power generation, we are being strangled by mounting debts, harsh policies, and a lack of repayment structure,” the statement read.
The APGC also raised alarms over excessive taxation, regulatory bottlenecks, and currency volatility, all of which further strain the power sector’s fragile financial state. Since the Partial Activation of Contracts began in July 2022, the companies claim they have not been adequately compensated for power delivered.
With power supply already unstable in many parts of the country, the GenCos say the situation could escalate into a national security threat if not addressed urgently.
They also criticized the N900 billion allocated to the power sector in the 2025 budget, calling it “grossly inadequate” to resolve the crisis.
The GenCos are calling for an urgent and structured repayment plan through cash payments, financial instruments, or debt swaps to prevent a total collapse of power generation in Nigeria.
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