The Nigerian Government has established a committee to address the payment of outstanding debts owed to Power Generation Companies (GenCos) and to develop sustainable mechanisms to prevent future arrears. The announcement was made during the event themed “A Decade of Powering Progress, Driving Nigeria’s Energy Transformation,” which brought together stakeholders across the power sector to reflect on achievements and challenges over the past ten years.
In his remarks, Chairman of the Senate Committee on Power, Senator Enyinnaya Abaribe, described the transformation witnessed in the power sector as both challenging and inspiring. He commended the Association of Power Generation Companies (APGC) for navigating complex regulatory environments and serving as a bridge between GenCos and key stakeholders across the electricity value chain.
According to him, “Through persistent engagement and strategic advocacy, the association has shaped discourse around energy security, investment attraction, and operational sustainability within the power generation landscape.
He added that despite ongoing challenges such as infrastructure deficits, tariff issues, and gas supply constraints, APGC has continued to provide a platform for collective problem-solving and unified advocacy.
On his part, Minister of Power, Mahmuda Mamman, who was represented by a Director in the Ministry, said the committee’s mandate goes beyond clearing existing debts to ensuring long-term financial sustainability in the sector.
“In recognition of the critical importance of resolving this issue for the sustainability of our power sector, Mr. President has constituted a committee specifically mandated to address the payment of outstanding debts owed to the GenCos,” he said.
Mamman praised GenCos for their resilience and patriotism despite being owed billions of naira. “You have not abandoned your posts in spite of severe liquidity challenges that would have forced closure in any other industry. This is not just business; this is patriotism in action,” he said.
He added that President Bola Tinubu is aware of the liquidity constraints facing the Nigerian Electricity Supply Industry (NESI) and is committed to finding lasting solutions. “As we work to resolve the debt situation, I encourage you to maintain the same spirit of resilience and commitment that has characterised your operations over the past decade,” Mamman said.
The minister also commended GenCos for contributing to job creation, training Nigerian engineers and technicians, and supporting local economies around their plants, describing their efforts as “invaluable and recognised.”
About the Author
