APGC CEO warns electricity shortages will worsen unless government clears outstanding payments to generation and gas companies….
The Joy Ogaji, chief executive officer of the Association of Power Generation Companies (APGC), has raised the alarm that gas suppliers are planning to halt fuel delivery to thermal power plants due to an estimated N3.3 trillion debt owed by generation companies (GenCos).
Ogaji revealed the situation in an interview with Fresh FM on Wednesday, linking the country’s persistent electricity shortages to the inability of the Nigerian Bulk Electricity Trading (NBET) Plc to fully pay GenCos since the sector’s privatisation.
Mounting Debt
According to Ogaji, the government currently owes GenCos about N6.8 trillion, with approximately 70% of that debt attributed to thermal power plants, amounting to N4.76 trillion.
Of this N4.76 trillion, around N3.3 trillion is owed directly to gas suppliers, who provide the fuel that keeps thermal plants running.
“NBET is set up to buy power from GenCos and sell to distribution companies (DisCos). The expectation is that payments are made in full, but since 2013, NBET has consistently failed to meet obligations, and the debt now stands at N6.8 trillion,” Ogaji explained.
She detailed the growth of the debt over recent years:
- 2015–Dec 2024: debt grew to N4 trillion
- Monthly shortfall in 2025: N200 billion per month, adding 4 trillion, bringing total to N6.4 trillion
- January–February 2026: debt increased to 6 trillion and N6.8 trillion respectively
- Projected end of March 2026: debt expected to reach N7 trillion
Thermal Plants and Gas Dependency
Ogaji clarified that while hydroelectric plants do not rely on gas, thermal power plants account for roughly 70% of the electricity on the grid, making gas supply critical.
“Of every N100 invoiced by thermal plants to NBET, N70 belongs to gas suppliers. This explains why the unpaid N3.3 trillion has put the gas supply at risk,” she said.
Currently, the grid includes 30 power plants, with hydropower contributing roughly 30% (including Zungeru’s 700 MW capacity) and 70% coming from gas-powered thermal plants.
Worsening Electricity Shortages
Ogaji warned that the ongoing debt crisis is the main reason for the current electricity shortfalls in the country.
“Correct to say that the debt is the reason why we are in darkness,” she said.
Gas suppliers, she added, are now demanding upfront payment before supplying fuel.
“Gas is not available because suppliers have told us that if we need gas, we need to put money on the ground to get it into the pipeline. They have been very patient, and thermal plants are still generating because of their leniency. But without payment, there will be no gas,” Ogaji warned.
Impact on GenCos and Financing
The failure of NBET to settle outstanding payments has left generation companies struggling to service bank loans taken during the 2013 power sector privatisation.
Ogaji’s warnings underscore the urgent need for government intervention to clear debts and ensure uninterrupted fuel supply, without which Nigeria’s electricity crisis is likely to deepen.
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