Gencos Warn of Imminent Collapse Amid ₦5.2 Trillion Debt Crisis

Nigeria’s power generation companies (Gencos) have sounded the alarm over a deepening financial crisis threatening the survival of the country’s electricity generation sector. The companies disclosed that they accumulated an additional ₦1.2 trillion in debt in just the first half of 2025, pushing their total outstanding liabilities to a staggering ₦5.2 trillion.

In a strongly worded statement, the Gencos said their continued operations have been sustained largely by a sense of patriotic duty, but warned that this commitment is no longer tenable under the current financial strain.

Industry experts describe the situation as not only unsustainable but also dangerous for the long-term stability of Nigeria’s power sector. Gencos revealed they have been operating for years under crippling financial conditions, often without receiving full payment for electricity supplied to the national grid. This has hampered their ability to maintain equipment, pay staff, procure gas, and invest in critical infrastructure.

“The system is on the brink,” a source within the sector said. “We cannot keep the turbines running on patriotism alone.”

The companies are now calling on the Federal Government to urgently roll out a comprehensive financial rescue plan and implement systemic reforms to ensure timely and complete payments for power delivered. Without swift intervention, they warn, Nigeria risks a total collapse of its electricity generation system—further deteriorating the country’s already fragile power supply.

The Gencos stressed that a financially viable power sector is essential for national development, economic growth, and the delivery of reliable electricity to homes and businesses across the country.