The Federal Government’s indebtedness to electricity generating companies (GenCos) has risen sharply to ₦800 billion, with no payments made so far in 2025, the Senate Committee on Power revealed on Saturday.
Chairman of the committee, Senator Enyinnaya Abaribe, disclosed this during a retreat organised by the Nigerian Electricity Regulatory Commission (NERC) in Ikot-Ekpene, Akwa Ibom State. He said the debt stems from the government’s failure to meet monthly tariff shortfall obligations of ₦200 billion to the GenCos.
“There is a liquidity crisis in the power sector. The generating companies are owed so much, and the distribution companies are also owed so much,” Abaribe said. “The government owes about ₦200bn monthly and no payment has been made this year. That means ₦800bn is already owed for 2025.”
He added that the new figures come on top of an existing ₦3 trillion debt to GenCos, which has also impacted gas suppliers, who are now struggling to continue supply due to mounting unpaid invoices.
The lawmaker stressed that urgent decisions must be made by both federal and state governments to resolve the crisis, warning that the sustainability of power generation and distribution is at risk.
“How do we get out of this? Who pays? Do we subsidise fuel or electricity? That’s the decision the government must make. Everywhere in the world, these choices are faced,” he added.
Speaking at the retreat, Minister of Power Adebayo Adelabu acknowledged the sector’s progress under President Bola Tinubu, including improved power generation, but cited funding shortfalls and widespread vandalism as critical challenges.
“Only in this country are energy infrastructures vandalised at such a magnitude,” Adelabu lamented.
Akwa Ibom State Governor Umo Eno, represented by Deputy Governor Senator Akon Eyakenyi, also called for improved electricity supply, noting that reliable power is crucial for boosting Small and Medium Enterprises (SMEs), which are key to economic growth.
Stakeholders at the retreat agreed that resolving the debt burden, stabilising tariffs, and safeguarding energy infrastructure are vital to ending the sector’s persistent challenges.
