Nigeria’s power generation companies (GenCos) have raised alarm over the worsening state of the electricity sector, cautioning that without urgent reforms, the industry risks deeper deterioration with dire implications for economic growth, investor confidence, and national development.
In a goodwill message marking Nigeria’s 65th Independence anniversary, the Association of Power Generation Companies (APGC) described the generation segment of the electricity value chain as being at a “critical crossroads” due to rising debts, liquidity constraints, and operational bottlenecks.
Chief Executive Officer of the APGC, Joy Ogaji, who signed the statement, said debts owed to GenCos have now surpassed ₦5 trillion, largely on account of unsettled subsidy payments that cost the Federal Government more than ₦200 billion monthly. She warned that “patriotism alone cannot sustain the operators,” particularly as gas suppliers increasingly divert output away from power plants.
“Without urgent, coordinated and sustained action, the sector risks further deterioration, a situation that would have far-reaching implications for national development, economic stability, and investor confidence,” Ogaji cautioned.
While acknowledging recent interventions to address market liquidity and stimulate private investment, the GenCos stressed that such gains could be quickly reversed.
“At 65, the reality is that the generation segment of the power value chain stands at critical crossroads. GenCos are under enormous financial and operational pressure,” the Association said.
The APGC also denied viral claims on social media that the Federal Government had approved a ₦4 trillion debt refinancing plan to clear arrears owed to 27 power generation companies between 2015 and 2023. It maintained that no such approval had been communicated- a development analysts say highlights the persistent lack of clarity in the sector.
Nigeria, despite having an installed capacity of over 13,000 megawatts, continues to generate between 3,500MW and 5,000MW, constrained by poor transmission infrastructure, gas shortages, and liquidity shortfalls. Since the 2013 privatisation exercise, the sector has remained hampered by financial illiquidity, cost-reflective tariff gaps and regulatory uncertainty.
The APGC reiterated that outstanding debts, estimated at ₦5.6 trillion as of last month, pose a grave threat to the survival of operators. It argued that failure to settle obligations, incentivise gas supply, and expand transmi8ssion investment could trigger sector-wide collapse.
“The progress made so far risks reversal if liquidity challenges are not resolved, if investments are not incentivised and if tariffs do not reflect the true cost of power,” Ogaji stated, adding that electricity supply remains vital to industrial growth, job creation and poverty reduction.
The Association commended Nigerians’ resilience, noting that the Independence anniversary should serve as a reminder of the need to transform the power sector into an engine of sustainable development.
“Unless bold steps are taken to resolve liquidity challenges, incentivise investment, and guarantee cost-reflective tariffs, the dream of a stable power supply will remain elusive, even as the country moves closer to its seventh decade of nationhood,” the statement concluded.

Nigeria has reaffirmed its commitment to deepening strategic alliances with Japan and other international partners during the Ninth Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan.

The Nigerian delegation, led by President Bola Ahmed Tinubu, participated in high-level engagements that prioritized power, infrastructure, and industrial transformation as critical levers for sustainable development.

Speaking at the summit, President Tinubu emphasized that Nigeria’s participation at TICAD 9 was not about trade exhibitions, but about forging strategic, outcome-driven partnerships that would deliver tangible results for the Nigerian people. He stressed that Nigeria is deliberately shifting from planning to implementation, from agreements to delivery, and from promises to measurable results.

At TICAD 9, the Honourable Minister of Power, Chief Adelabu who was part of the national delegation held high-level engagements with Japanese stakeholders, including Toshiba, Hitachi, Japan’s Transmission & Distribution Corporation, and Energy Exchange corporations, focusing on transmission infrastructure, operational efficiency, and strategies to reduce system losses.

These engagements built on the recent Federal Executive Council approvals for counterpart funding of ₦19,083,192,805.30 to catalyse a loan funding of $238 million from the Japan International Cooperation Agency (JICA).

This loan funding will support the expansion of the national grid with the addition of 102.95km of new 330kV double circuit (DC) line, 104.59km of new 132kV double circuit (DC) line, four 330/132/33kV substations, two132/33kv substations, two 330kV line bays extension, two 132kV line bays extension, and one 132kV Substation.

During this engagement, the Minister also announced that Nigeria is advancing a $190 million renewable energy loan facility supported by the Japan International Cooperation Agency (JICA), designed to scale distributed renewable energy solutions across underserved communities.

This builds on the recently launched $750 million World Bank Distributed Access through Renewable Energy Scale-up (DARES) programme under the Mission 300 Compact, which aims to bring clean and reliable electricity to more than 17 million Nigerians.

In parallel, three substations funded by JICA through a $32 million grant are set for commissioning in Apo (FCT), Keffi (Nasarawa State), and Apapa (Lagos State). These projects will directly strengthen supply reliability to households, businesses, and industrial clusters, including critical facilities such as the Lagos Port and surrounding industrial areas.

In addition, through the partnership with JICA, the National Power Training Institute of Nigeria (NAPTIN) has commissioned a state-of-the-art training equipment in Abuja to strengthen the skills of distribution engineers and tackle network losses.

This facility is designed to deepen local expertise and promote long-term sustainability in sector operations through capacity development which remains a cornerstone of Nigeria’s power sector strategy.

Speaking during a panel session titled “HICKARE Africa: Harnessing Innovation, Co-creation, and Knowledge for Accessible and Resilient Energy for Africa,” Minister Adelabu highlighted Nigeria’s current energy realities, noting that only 55–60 percent of the country’s population of over 200 million has access to electricity, much of which remains unreliable.

He explained that the Federal Government is addressing this gap by expanding grid access in urban areas while simultaneously accelerating off-grid solutions, including solar mini-grids and standalone systems, for rural and peri-urban communities.

Despite persistent challenges such as limited access to affordable capital, cost barriers for rural households, and under-utilization of productive-use equipment, Minister Adelabu reaffirmed the government’s commitment to overcoming these obstacles through supportive policies, strategic private-sector partnerships, and local manufacturing of renewable energy components.

The Minister of Power expressed deep appreciation to JICA and the Government of Japan for their long-standing support to the Nigeria’s power sector, recognizing JICA as a reliable partner in advancing the country’s energy transition and expanding access to reliable, affordable, and sustainable electricity. Minister Adelabu highlighted JICA’s contributions across infrastructure development, technical studies, training, and renewable energy financing and expressed optimism for further strengthened collaboration and partnership between the Governments of Japan and the Federal Government of Nigeria.

The Managing Director, Niger Delta Power Holding Company (NDPHC), Jennifer Adighije, an engineer, has assured the Manufacturers Association of Nigeria (MAN) of the company’s willingness to partner with them to drive industrial growth, create jobs, and enhance socio-economic development of the country.

Adighije, who was speaking during the visit of a 20-member delegation from the Manufacturers Association of Nigeria (MAN), Kano Branch, to her office, expressed NDPHC’s readiness to support manufacturers within the ambit of regulations and infrastructural capacity.

“We are committed to partnering with the manufacturing sector to drive industrial growth, create jobs, and enhance socio-economic development. Within the provisions of the Eligible Customer framework, we are ready to work with MAN Kano Branch to make this happen,” she said.

She noted that the company’s recent improvement in plant availability has positioned NDPHC to ramp up supply and meet off-taker demands once regulatory approval is received, adding that the revival of key assets, including the Omotosho and Alaoji power plants, will further enhance generation capacity

The MAN delegation was led by the Managing Director of Dala Foods, Kano, Ali Madugu.
Madugu appealed to the NDPHC boss to extend the company’s Eligible Customer Programme to the branch in a bid to address the severe power challenges crippling local manufacturing activities in the state.

He emphasised the readiness of Branch to partner with NDPHC for a sustainable power supply.
“Our members have both the capacity and the willingness to procure power directly from NDPHC. Access to reliable electricity is critical for reviving industries and sustaining jobs in Kano State,” he stated.

Recall that Adighije, had stated that the company plans to free and commercialise approximately 200 megawatts of its 2,000 megawatts of stranded electricity by the end of 2025.

She had also bemoaned the “abysmally low uptake of electricity’ from the electricity market by the electricity distribution companies, saying this had significantly weighed down the company’s operations.