The Association of Power Generation Companies (APGC) has warned of a possible nationwide shutdown of power plants due to unpaid invoices exceeding ₦4 trillion.
In a statement issued on Monday and signed by the Chairman of the Board of Trustees, Col. Sani Bello (Rtd), the association disclosed that the debt comprises ₦2 trillion accrued in 2024 and ₦1.9 trillion in legacy debts. The APGC said the non-payment for electricity supplied to the national grid has triggered a liquidity crisis, severely affecting the operations of power generation companies (GenCos).
According to the association, the crisis has hindered GenCos’ ability to meet critical financial obligations, posing a significant threat to the stability of the entire electricity value chain.
The APGC has called for the immediate implementation of a payment plan to clear all outstanding invoices. It further demanded a reprioritization of the current payment waterfall arrangement, advocating for the full and timely settlement of GenCos’ invoices.
“A clear financing plan is required to support exposures in the Nigerian Electricity Regulatory Commission’s (NERC) Supplementary Order to the MYTO and Distribution Revenue Order (DRO) 2024,” the statement read. The association said such a plan would offer financial stability and predictability, allowing GenCos to plan effectively and invest in system improvements.
Additionally, the APGC is seeking payment security guarantees backed by institutions such as the World Bank and the African Development Bank (AfDB) to ensure uninterrupted payments to GenCos. This, it said, would support the sector’s growth and expansion efforts.
The association also called for greater transparency in billing, collections, and remittance processes to restore trust in the power sector and ensure that GenCos receive accurate and timely payments.
The APGC warned that failure to address these challenges urgently could lead to national security risks and further undermine the country’s electricity supply.
