Power generation companies under the Association of Power Generation Companies (APGC) say outstanding unpaid invoices for electricity supplied to Nigeria’s national grid have surged to about ₦6 trillion.
The group warned that the growing debt burden threatens the sustainability of power supply.
The association said revenue shortfalls and weak remittances across the electricity value chain have strained the financial capacity of generation firms.
They noted that the liquidity crisis has limited investment in maintenance, fuel procurement, and expansion.
Rejection of Labour Allegations
The APGC strongly rejected allegations by the Nigeria Labour Congress (NLC) that electricity firms were engaged in “institutionalised extortion.”
The group said the claims misrepresent the deep-rooted financial challenges facing the sector.
Chief Executive Officer Joy Ogaji issued a statement on Wednesday in response to NLC President Joe Ajaero’s comments.
She accused labour of peddling a “simplistic and inflammatory narrative” that ignored structural problems.
Ogaji said, “While we acknowledge the frustrations of Nigerians regarding unstable power supply, we must firmly reject the NLC’s characterisation of the sector’s challenges. To label the legitimate operations of power firms as robbery and a grand deception is a misrepresentation of the facts and a disservice to ongoing efforts to stabilise Nigeria’s electricity supply industry.”
Debt Burden and Market Risks
The association said GenCos, consisting of more than 20 member companies, are the most exposed players in the electricity value chain.
They explained that generation firms are entitled to about 60% of market receivables based on invoiced energy bills, yet unpaid invoices now exceed ₦6tn.
According to the statement, “The truth is that the power sector, over a decade after privatisation, remains hamstrung by severe liquidity challenges. GenCos face the greatest risk in the electricity value chain, with outstanding unpaid invoices now over six trillion naira.”
The GenCos insisted they were open to scrutiny. They said their financial records could be subjected to forensic audit if necessary.
“If the NLC and any other institution find it necessary, let it be known that GenCo books are ready for any forensic examination. But the facts must be established and the real causes of the sector’s challenges identified,” the statement added.
The association dismissed insinuations that government support for the sector was a covert political arrangement ahead of elections.
They described such claims as “baseless and offensive to professionals working tirelessly in the industry.”
Warning Against Misrepresentation
The group warned that persistent misrepresentation of the sector’s financial realities could discourage investment and worsen power shortages.
They said, “GenCos deserve pity and not castigation, ridicule, and victimisation. Trying to smear their image with such baseless and unfounded allegations is not only unfair but misleading to the Nigerian populace, giving the impression that the sector is not regulated and that electricity market participants can do as they please unchecked.”
The association urged labour to engage constructively with industry stakeholders rather than escalate tensions.
They noted that the sector required coordinated reforms to address longstanding structural weaknesses.
The latest row follows comments by NLC President Joe Ajaero, who accused electricity firms of exploiting Nigerians through tariff adjustments and alleged hidden subsidies.
He warned that government support for the industry amounted to a covert plan to “settle the boys.”
The labour union also threatened industrial action but put no timeline or specific demands on the table.
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