President Bola Tinubu has set up a committee tasked with ensuring the payment of outstanding debts owed to the Generation Companies (GenCos), as well as developing a framework to prevent future debt accumulation.
Mahmuda Mamman, permanent secretary, Ministry of Power, disclosed this in Abuja on Monday, as the Association of Power Generation Companies of Nigeria (APGC) marked its 10th anniversary.
According to Mamman, the generation companies have demonstrated a level of commitment to Nigeria that goes far beyond ordinary business practice.
He added that the commitment of the companies to navigating complex challenges while consistently striving to generate power to illuminate homes, energise businesses, and drive economic growth across our great nation even in the most difficult circumstances, is commendable and does not go unnoticed.
He said, “Despite being owed substantial debts in billions of Naira that have accumulated over the years—you have not abandoned your posts and the severe liquidity challenges that would have forced closure in any other industry, you have kept the turbines running, the lights on, and the wheels of our economy turning.
“This is not just business; this is patriotism in action. For this extraordinary sacrifice and dedication to the Nigerian Electricity Supply Industry (NESI), we owe you a profound debt of gratitude—and indeed, we owe you payment of the actual debt!
“You are aware that your perseverance and voices have been heard at the highest levels of government. President Bola Ahmed Tinubu, in his characteristic responsive leadership style, is fully aware of the liquidity challenges facing the Nigerian Electricity Supply Industry, particularly the debt burden on generation companies. 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. This Committee has been charged with the responsibility of developing a comprehensive framework for clearing these debts and establishing sustainable payment mechanisms that will prevent such accumulations in the future.”
Represented by Evangeline Babalola, a director in the Ministry, Mamman said that access to reliable and affordable electricity remains one of Nigeria’s most pressing developmental challenges.
He said that the gap between the nation’s current generation capacity and national demand continues to constrain economic productivity, limit social development, and affect the quality of life of millions of Nigerians.
In his remarks, Enyinnaya Abaribe, chairman, Senate committee on power noted that issues of infrastructure deficit, tariff structures, gas supply constraints, and financial sustainability remain pressing concerns that demand continued collaborative action.
He explained that it is precisely in confronting these challenges that APGC has demonstrated its greatest value, providing a platform for collective problem-solving and unified advocacy that amplifies the voice of individual Generation Companies.
He said, “Looking ahead, the future of Nigeria’s energy transformation rests upon our collective commitment to innovation, investment, and inclusive stakeholder engagement.
“The power generation sector remains fundamental to our national development aspirations, and the role of APGC in facilitating dialogue, promoting best practices, and advocating for enabling policies cannot be overstated.
“As our nation pursues ambitious goals of energy access, economic diversification, and industrial growth, the contribution of Generation Companies and their representative association will be absolutely critical.”
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Joy Ogaji, managing director, APGC in her remark, stated that the Nigerian power sector is under threat, as the generation companies continously face recurring challenges such as endemic liquidity challenge, gas shortages, inadequate grid infrastructure, and regulatory uncertainty.
According to Ogaji, power generation companies (GenCos) were born into an evolving market, filled with promises, yet fraught with challenges.
“Today marks a truly special moment, a defining milestone in our collective journey, as we gather to celebrate a decade of APGC’s existence and nine years of steady leadership, partnership, and resilience.
“Ten years ago, the power sector stood at the crossroads of transition. The privatization of 2013 opened new doors, but also new uncertainties. power generation companies (GenCos) were born into an evolving market, filled with promise, yet fraught with challenges: liquidity shortfalls, gas constraints, infrastructure bottlenecks, and policy inconsistencies,” she said.
