News
Power Generation Companies Express Concern Over N4 Trillion Unpaid debts, Warn Imminent Shutdown
Nigeria’s electricity generation companies (GenCos) have raised the alarm over an impending collapse of their operations due to the crippling debt of over N4 trillion owed to them by the federal government.
The debt, comprising legacy obligations and unpaid subsidies for 2024, was severely undermining the power sector’s ability to function optimally.
The Board of Trustees chairman of the Association of Power Generation Companies (APGC), Col. Sani Bello (rtd), who made this known on Monday, said GenCos were currently owed N2 trillion for power supplied in 2024 and N1.9 trillion in legacy debts.
The companies noted that plants were being paid less than 30 per cent of monthly invoices for power supplied to the national grid.
The companies stated: “It is no more news that the power generation companies have continued to bear the brunt of the liquidity crisis in the Nigerian Electric Supply Industry (NESI).
“GenCos, on their part 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 over 10 years, amid system constraints, policies & regulations that are not investors friendly, increasing debts owed by the FGN without a clear financing plan, lack of firm contracts and a market without securitisation but based on best endeavours, thereby hampering future planning.
“Notwithstanding this and other severe difficulties 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.
“Against the backdrop of the many challenges facing the power sector in Nigeria, the crises from cash liquidity are on the top burner and have reduced GenCos ability to continue to perform their obligations, thereby threatening to undermine the Electricity value chain completely.
“The 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).”
The GenCos added, “In light of the severity of the issues highlighted above, the GenCos are requesting that immediate and expedited action be taken to prevent national security challenges that may result from the failure of the GenCos to sustain steady generation of electricity for Nigerians.
“The 2024 collection rate has dropped below 30 per cent, and 2025 is not any better, severely affecting GenCos’ ability to meet financial obligations. Tax and Regulatory Challenges: High corporate income tax, concession fees, royalty charges, and new FRC compliance obligations are further straining GenCos’ revenue. GenCos are currently owed about N4 trillion (N2 trillion for 2024 and N1.9 trillion in legacy debts). No possible solutions, including cash payments, financial instruments, and debt swaps, are in sight.
“The 2025 government budget allocates only N900 billion, raising concerns about its adequacy to cover arrears and future payments. 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, the minimum remittance order, bilateral market declaration, waterfall arrangement, the risks of inflation, forex volatility with no dedicated window to cushion the effect of the forex impact, the supplementary MYTO order which leaves about 90% of GenCos monthly invoices unmet without a bankable securitisation, or financing plan. This situation has dire consequences for the GenCos and by extension the entire power value chain.”
The generation companies, which called for the implementation of payment plans to settle all outstanding GenCos invoices, observed that “the flow of money within the power industry is one of the fundamental problems preventing Nigerians from enjoying continued and sustainable improvement in electricity supply.”
The Economic and Financial Crimes Commission, EFCC, has nabbed a renowned business executive and socialite, Aisha Sulaiman Achimugu.
Her legal team made this known in a statement on Tuesday, emphasizing that Achimugu, who arrived voluntarily into the country from London, was arrested around 5 a.m. on Tuesday.
Meanwhile, her lawyer had reportedly told the Federal High Court in Abuja that she had already stated in her court documents that she would visit the EFCC today in connection with its ongoing investigation into an alleged case of criminal conspiracy and money laundering.
Justice Inyang Ekwo of the Federal High Court, Abuja, ordered Achimugu to appear before the Economic and Financial Crimes Commission, EFCC, on Tuesday, April 29, 2025, to respond to allegations related to an ongoing investigation.
The court also directed that she must be present before it on Wednesday, April 30, 2025, to continue proceedings in the matter.
The Chairman of Ward 1 of the Labour Party (LP) in Akoko-Edo Local Government Area of Edo State, Okasime Olowojoba, has been kidnapped while traveling along the Auchi-Benin-Ibillo Road.
The incident occurred on Saturday near Sasaro, a location notorious for frequent cases of abduction. Olowojoba, who also works as a realtor, was reportedly returning to Igarra after visiting Auchi to pick up his children following their holiday break.
According to reports, the assailants initially seized everyone in the vehicle — Olowojoba, his children, and a house help — but later freed the children and the domestic aide, taking only Olowojoba deep into the forest.
A family member speaking with Vanguard on Monday revealed that the kidnappers are demanding a ransom of N50 million for his release.
The source explained, “Valentine Okasime Olowojoba was returning with his children when he was ambushed and kidnapped around Sasaro. The lack of network service throughout Saturday delayed any contact with the kidnappers until Sunday afternoon.”
“The attackers abandoned the vehicle at the scene and took him away. His brother later confirmed that a N50 million ransom has been demanded. We also heard reports of additional abductions in the same area on Sunday,” the source added.
Efforts to reach the Edo State Police spokesperson, Moses Yamu, for confirmation were unsuccessful, as calls to his phone went unanswered.
Vanguard
Justice Inyang Edem Ekwo of the Federal High Court in Abuja has struck out a N1 billion suit instituted against former President Muhammadu Buhari and former Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele over the hardships that trailed the 2023 Naira redesign policy.
The judge threw out the suit instituted by an Abuja based legal practitioner, Uthman Isa Tochukwu on the grounds of lack of diligent prosecution of the case.
In a ruling on Monday, Justice Ekwo said that he was convinced that the plaintiff had deliberately abandoned his own case due to his persistent absence in court without legal representation and any explanation.
The plaintiff in the suit marked FHC/ABJ/CS/418/2023 had dragged the former President, Attorney General of the Federation, former governor of the CBN, CBN and two commercial banks before the court claiming that they inflicted series of hardships on him during the redesign of the Naira.
In the suit filed on his behalf by his counsel, Bala Dakum, the plaintiff alleged that his fundamental rights to freedom of movement and dignity of his person were violently breached.
Specifically, the legal practitioner claimed his movement was curtailed while his money in the two commercial banks could not be assessed during the hardship occasioned by the redesign of the Naira in January and March 2023.
He therefore prayed the court to award N1 billion damages against the defendants to be paid to him for the breach of his fundamental rights.
However, at Monday’s proceedings, both the plaintiff and his counsel were not in court and did not offer any excuse for their absence.
Counsel to the 3rd and 4th defendants (Emefiele and CBN) Mr Chikelue Amasiani drew the attention of Justice Ekwo to the persistent absence of the plaintiff and his counsel in court during past proceedings.
He prayed the judge to strike out the suit and that the plaintiff can come back to revive the case when ready to show seriousness.
In a brief ruling, Justice Ekwo agreed with the lawyer and struck out the suit.
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