Nigeria generating companies facing $2 billion debt crisis

• 28 days ago (2024-06-04)
• David Flin

Africa 306 Distribution 112

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Nigeria’s Power Generation Companies have stated that over $2 billion owed to them is threatening their operations and failure to resolve the crisis will lead to the collapse of electricity generation in the country.

Col. Sani Bello (Rtd), Chairman of the Board of the Power Generation Companies, said that the gencos are bearing the brunt of the liquidity crisis in the electricity sector, and that the current Multi-Year Tariff Order (MYTO) has further worsened their situation with payment of 9-11 per cent paid for by its customers. He said: “Gencos are currently owed over two trillion naira ($1.1 billion) for power the generated, put onto the national grid, and consumed by end users. This is in addition to the over 1.7 trillion naira ($0.9 billion) 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.”