Abuja, Nigeria – Nigeria’s power sector is on the brink of a major crisis as electricity generation companies (GenCos) warn of imminent shutdowns due to the Federal Government’s failure to settle a N1.9 trillion subsidy debt. Reports indicate that only 20% of the outstanding amount has been paid, leaving power plants struggling to meet operational costs.
The GenCos, responsible for generating electricity across the country, have expressed frustration over the delayed payments, which they say have severely impacted their ability to maintain infrastructure and procure necessary resources. "Without full payment, we cannot continue to operate," said a spokesperson for one of the affected companies. "This situation threatens to plunge the nation into darkness."
The subsidy debt stems from the government’s commitment to cover the gap between the cost of electricity production and the tariffs paid by consumers. However, the partial payment has left the GenCos in financial distress, with some already scaling back operations.
The potential shutdown of power plants could have devastating consequences for Nigeria’s economy, which is already grappling with inadequate power supply. Businesses, households, and critical infrastructure such as hospitals and schools would be severely affected by prolonged blackouts.
In response to the crisis, stakeholders in the power sector have called for urgent intervention from the Federal Government. "This is a ticking time bomb," said an industry expert. "If the debt is not settled promptly, the entire power sector could collapse."
The Federal Ministry of Power has acknowledged the issue but cited budgetary constraints as the reason for the partial payment. "We are working to resolve the matter and ensure stability in the power sector," a ministry official stated.
As the situation unfolds, Nigerians are bracing for the possibility of widespread power outages, while industry players urge the government to prioritize the sector to avert a total breakdown.
