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Darkness looms in Nigeria as GenCos threaten shutdown over unpaid N4tn debt

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There is looming darkness in Nigeria as power generation companies threaten a showdown.

This is as unpaid debts from the federal government and other market operators surged to over N4 trillion.

Chairman of the Boardof Trustees of the GenCos, Rtd. Colonel Sani Bello, made threats known to journalists in Abuja on Monday.

GenCos lamented that the mounting liabilities were crippling their ability to operate and threatening a total shutdown of electricity generation in Nigeria.

“The power generated by GenCos has continued to be consumed in full without corresponding payment.

“This situation has dire consequences for the GenCos and, by extension, the entire power value chain,” he said.

Of the N4tn owed, N2tn is for electricity generated in 2024, while N1.9tn represents legacy debts.

GenCos noted that the 2025 national budget’s N900 billion allocation for the power sector is grossly inadequate to address those arrears and sustain future payments.

Bello described the situation as “a clear departure from existing terms of the Power Purchase Agreement,” adding that under current conditions, GenCos only receive about 9–11 ppercent of their invoices, while regulatory bodies and other service providers are paid in full.

The GenCos also highlight the sharp decline in collection rates— below 30 percent in 2024— which they say has worsened the liquidity crisis.

“The crises from cash liquidity are on the top burner and have reduced GenCos’ ability to continue to perform their obligations,” he said.

Further compounding the issue are operational costs denominated in U.S. dollars and limited access to forex.

“The importance of a specialised window or stable dollar allocation option for the GenCos cannot be overemphasised,” Bello said.

GenCos added that they were demanding urgent government action, including full settlement of outstanding invoices, reprioritization of the waterfall payment structure, and guarantees backed by institutions like the World Bank and AfDB.

“There is a need for a coordinated approach by all stakeholders to address the liquidity issue realistically and sustainably. This request requires urgent attention,” he added.

The Minister of Power, Adebayo Adelabu, has yet to respond to the matter as of the time of filing this report.

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Lawyers Back Tax Ombud’s Push for Greater Voluntary Compliance

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…..by Chukwudi Achife, Chief Press Secretary to the Tax Ombud.

Nigerian lawyers have thrown their support behind the Office of the Tax Ombud’s campaign to boost voluntary tax compliance, describing taxation as a critical source of government revenue for infrastructure and social services.

The endorsement came during a panel discussion titled “Pay Now, Prosper Later” at the 66th Annual General Conference of the Nigerian Bar Association (NBA) in Port Harcourt, Rivers State.

The session featured Tax Ombud and Chief Executive Dr. John Nwabueze alongside senior lawyers, including Ahmed Raji, SAN. Participants stressed the need to strengthen public trust in tax authorities as a pathway to higher voluntary compliance and increased revenue.

R-L: Tax Ombud/Chief Executive, Office of the Tax Ombud, Dr. John Nwabueze, Nigerian Revenue Service’s representative, Mrs. Bolanle Oniyangi, and Ahmed Raji, SAN, during a panel discussion recently at the 66th Annual General Conference of the Nigerian Bar Association (NBA) in Port Harcourt, Rivers State.

Dr. Nwabueze told the audience that the Office remains committed to offering taxpayers an independent and impartial channel for resolving tax-related complaints fairly and promptly.

“The Office of the Tax Ombud will alleviate the burden of administrative and procedural issues for taxpayers, helping to foster trust between citizens and tax authorities,” he said. “It is our belief that the Office will contribute significantly towards bridging the gap between taxpayers and tax administration, making the tax system more accessible and trusted. We strive to ensure that tax grievances are resolved in an open and accountable manner, ultimately strengthening Nigeria’s tax system.”

Since opening to the public in January, the Office has received 22 complaints and resolved 14 of them, Dr. Nwabueze disclosed. He added that ongoing stakeholder engagement and public-awareness efforts aim to expand access to its services.

While noting that the Office is non-judicial, he described it as an important early-dispute-resolution mechanism that can ease pressure on the courts and other tax adjudication bodies.

Nigerians seeking information or wishing to lodge a complaint are encouraged to contact the Office of the Tax Ombud. Officials expressed confidence that growing public awareness will enable the Office to play a larger role in building a fairer, more transparent and trusted tax system.

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Sanwo-Olu Wins 2026 Global Governance Prize

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…..As the Governor Prepares to Deliver Keynote on Diaspora Investment

The Governor of Lagos State, Mr. Babajide Sanwo-Olu, has been named the recipient of the 2026 Global Transformation and Good Governance Prize by the Millennium Excellence Award USA.

In a letter from the Board of Directors of the Millennium Excellence Foundation (MEF), the award was conferred on Governor Sanwo-Olu after a rigorous selection process that recognised the extraordinary achievements and developmental trajectory of Lagos State under his leadership.

The letter stated: “The Board has unanimously resolved to confer upon His Excellency Babajide Sanwo-Olu one of the most prestigious honours bestowed under the auspices of the Foundation – the Global Transformation and Good Governance Prize by the Millennium Excellence Award USA.”

The award is conferred under the Royal Patronage of His Majesty Otumfuo Osei Tutu II, Asantehene of Kumasi. The Asantehene, regarded as one of Africa’s most respected monarchs, will personally present the honour alongside Her Royal Highness Lady Julia, Queen Consort, at the ceremony.

The Millennium Excellence Awards USA recognises outstanding individuals of African heritage and global contributors who have made significant impact in business, science, arts, philanthropy, and public service.

The ceremony will take place at the Warner Theatre, Washington D.C., on Saturday, 29th August 2026, with the Red Carpet commencing at 2:30 p.m.

Governor Sanwo-Olu will deliver a keynote address on positioning Lagos State, Africa’s largest sub-national economy, to diaspora communities. The address aims to attract investment in urban infrastructure, finance, and the state’s pipeline of investment-ready projects.

He will also participate in other sessions, including “Government Addresses: The Political Will Behind the Deal,” plenaries, and roundtable discussions focused on strengthening economic and social ties between Lagos and the diaspora.

Past laureates include Archbishop Desmond Tutu, Dr. Kofi Annan, Mo Ibrahim, Wole Soyinka, South African President Cyril Ramaphosa, Aliko Dangote, Tony Elumelu, and President John Dramani Mahama.

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Enugu iron-smelting site Gets $125,000 US Grant

The U.S. Consul General, Brandon Hudspeth, noted that the Lejja Iron-Smelting Site tells a 4,000-year-old story of ingenuity, innovation and technological sophistication.

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• Enugu State Governor, Peter Mbah

The United States government is availing $125,000 grant for the presentation of the historic Lejja iron-smelting site in Enugu State.

This was disclosed in a statement by the U.S. Consulate General in Lagos , yesterday, emphasising that the fund will support the conservation, 3D digital documentation and physical preservation of the site, which dates to approximately 2000 BC.

The U.S. Consul General, Brandon Hudspeth, noted that the Lejja Iron-Smelting Site tells a 4,000-year-old story of ingenuity, innovation and technological sophistication.

The fund was provided through the U.S. Ambassadors Fund for Cultural Preservation (AFCP) to the Centre for Memories in Enugu to support the digital documentation and physical preservation of the historic Lejja iron-smelting site in Enugu State.

According to the Consulate, the project will support the conservation, 3D digital documentation and physical preservation of the site, which dates to approximately 2000 BC.

The project’s implementation by the Centre for Memories, led by U.S. exchange alumnus, Iheanyi Igboko, reflects the enduring connections forged through the Cultural Heritage Forward program, which is funded by the U.S. Department of State and organised in partnership with the Smithsonian Institute .

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