The development has raised concerns about the stability of the national grid and the country’s ability to sustain its electricity supply.
The Managing Director/Chief Executive Officer of the Association of Power Generation Companies, Dr Joy Ogaji, confirmed the development in an interview with journalists on Thursday. She warned that the situation, if not urgently addressed, could push Nigeria deeper into darkness.
This warning came shortly after another national grid collapse threw the entire country into blackout earlier in the week. Although partial restoration has since brought back about 4,000 megawatts, many plants are still operating below capacity.
Ogaji explained that while GenCos remain committed to supporting the country, the liquidity crisis in the sector has spiralled out of control. She disclosed that from January to August 2025 alone, an additional N1.6tn debt had accumulated, bringing the total outstanding to N5.6tn.
She recalled that President Bola Tinubu had met with the GenCos on July 25 to discuss an estimated N4 trillion debt owed to them, covering legacy debts and unpaid invoices. At the meeting, Tinubu appealed for patience while the government completed the verification and validation of the claims. He also approved, in principle, a N4tn bond programme to address the liquidity gap in the sector.
