JUST IN: Blackout Looms As GenCos Threaten To Shutdown Operations Over ₦2 Trillion Debt Service—Power Generation Companies (GenCos) have revealed that they are being owed ₦2trn electricity debt.
They called on the federal government to address the situation, adding that 90 per cent of their monthly invoices remain unpaid.
They stated that situation is currently affecting the continued operation of their power generation plants.
GenCos warned that if steps are not taken to address the situation, it may lead to the lack of steady electricity for Nigerians.
The companies shared their grievances via a statement signed by its Board Chairman on Sunday, Colonel Sani Bello (retd.),
The statement read in part, “Even though the supplementary MYTO order leaves about 90% of GenCos monthly invoices unmet without a bankable securitisation or financing plan, the power generated by GenCos has continued to be consumed in full without corresponding full payment.
“The GenCos therefore called on the Federal Government and key stakeholders to urgently address the issue of inadequate payment for electricity generated by them and consumed on the national grid, insisting that the liquidity challenge threatens the continued operation.
“GenCos are of the position that the liquidity challenge threatening the continued operation of their power generation plants must be addressed urgently, and sustainably too. Besides being owed huge debts, GenCos also are operating under very harsh monetary and fiscal conditions, occasioned by the economic realities that face the country today.
“The flow of money within the power industry is one of the fundamental problems preventing Nigerians from enjoying continued and sustainable improvement in electricity supply.
“Expeditiously solving these issues would enable GenCos to meet their critical needs which would, in turn, ensure that they sustainably generate power, to enable Nigerians to have better access to reliable electricity supply. GenCos would like to re-emphasise that this request requires urgent attention.”
