Nigeria’s Power Crisis Deepens as GenCos Warn of Shutdown
Federal Government Pays Only 20% of N1.9 Trillion Subsidy Debt
Despite promises from President Bola Tinubu’s administration, Nigeria’s power sector is in a worsening financial crisis, with generation companies (GenCos) warning of potential shutdowns.
GenCos have raised concerns over a looming tariff hike due to new tax impositions and the government’s failure to fully settle outstanding debts. Documents from the Nigerian Electricity Regulatory Commission (NERC) reveal that the Federal Government has only paid N371 billion—just 19.5% of the N1.9 trillion subsidy from last year’s tariff shortfalls.
As state governments take over regulatory oversight from NERC, the financial burden on power companies continues to mount. Records showing that while GenCos issued invoices worth N2.7 trillion between January and November 2024, only N762.1 billion was paid—leaving a massive N1.94 trillion shortfall.
The crisis has left 26,160MW of generated power stranded, with national grid output hovering between 3,900MW and 4,900MW—far below the 6,000MW target. GenCos have demanded immediate debt settlement and a sustainable funding structure to prevent imminent plant shutdowns.
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