The Power Generation Companies (GenCos) have stated that over N3.7trn debt owed to the companies is threatening their operations and failure to resolve it will lead to the collapse of electricity generation in the country.
A statement signed by its Board Chairman, Sani Bello, stated that GenCos are left to bear the brunt of the liquidity crises in the electricity sector.
Bello said the current Multi-Year Tariff Order ((MYTO) by NERC has further worsened their situation with payment of 9 to 11 per cent of services rendered paid for by its customers.
“GenCos are currently owed over two trillion naira for power they generated, put onto the national grid, and consumed by end users. This is in addition to the over 1.7trillion naira, funding gap created in the recent supplementary MYTO order 2024 without a designated fund to fill the gap.”
“This huge debt outlay is now greatly inhibiting GenCos ability to meet their obligations to lenders, O&M operations, necessary maintenance, spare parts procurements, and employee-related obligations.”
