Business

JUST IN: FG scrambles to avert Gencos shutdown over N4tn debt

Published

2 years ago

April 15, 2025

742 Views

Minister of Power has pledged to address N4tn electricity debt owed by GenCos, which saw the electricity distribution companies threatening a shutdown on Monday.

Weighing in on the development, the special adviser to the Power Minister, Bolaji Tunji, said the government is aware of the development and is making concrete steps to resolve the lingering issue.

He said as part of the steps taken by the government, the Ministry of Finance will take charge of the payment very soon.

The media aide responding on Monday said, “We are not unaware of this debt arising from the FG’s commitment on subsidy. Part of the debts are legacy debts, which were on the ground before the Minister of Power assumed office.

The Minister of Power has repeatedly harped on this, knowing the implication of such debts to the operations of the various power sector stakeholders, especially the GENCOs.

The Minister of Power is very much concerned.

“The issue is being discussed with the Ministry of Finance, making a case for how the debt must be paid. We expect the Ministry of Finance to take action on this soon.

”A nationwide blackout looked imminent as the 23 power generation companies warned that they can no longer guarantee a steady electricity supply due to the worsening liquidity crisis in the electricity market, with outstanding debts now exceeding N4tn, comprising N2tn for power supplied in 2024 and N1.9tn in legacy debts.

The firms, under the aegis of the Association of Power Generation Companies, raised the alarm in a statement issued on Monday and signed by the Chairman of the Board of Trustees, Col. Sani Bello (retd.).

They said the debt burden and operational constraints currently facing the companies could force an imminent shutdown of power plants if urgent interventions were not implemented.

The companies noted that plants were being paid less than 30 per cent of monthly invoices for power supplied to the national grid.

They warned that the continued non-payment for electricity generated and consumed on the national grid was pushing the Nigerian power sector towards a total collapse.

The statement, titled ‘Over N4tn unpaid invoices threaten GenCos imminent shutdown’, lamented the lack of a clear financing plan from the Federal Government, alongside worsening fiscal and operational constraints within the Nigerian Electricity Supply Industry.

They also accused the Nigerian Bulk Electricity Trading Plc and other stakeholders of neglecting GenCos in the application of the NESI’s “waterfall arrangement”, which sees other service providers receive 100 per cent of their market invoices while GenCos get as little as 9 per cent to 11 per cent of what is due.

The statement read, “The Power Generation Companies (‘GenCos”) are constrained to issue this press release to draw the attention of the Federal Government and key stakeholders to the need to urgently address the issue of inadequate payment for electricity generated by them and consumed on the national grid, which is currently threatening the continued operation of their power generation plants.

Against the backdrop of the many challenges facing the power sector in Nigeria, the crises from cash liquidity are on the top burner and have reduced GenCos’ ability to continue to perform their obligations, thereby threatening to completely undermine the electricity value chain.

“In light of the severity of the issues highlighted above, the GenCos are requesting that immediate and expedited action be taken to prevent national security challenges that may result from the failure of the GenCos to sustain steady generation of electricity for Nigerians.”

Recall that in February, the Minister of Power, Adebayo Adelabu, disclosed that the government owes electricity generation companies and electricity distribution companies over ₦4 trillion in electricity subsidies.

Giving a breakdown, the minister said N2 trillion is owed to GenCos as legacy debt, while another N1.9 trillion is owed to them as part of the electricity subsidy for 2024, while DisCos are owed N450 billion for the 2024 electricity subsidy.

In the statement released under the umbrella of the Association of Power Generation Companies, the GenCos expressed deep frustration over what they described as “inadequate payment for electricity generated and consumed on the national grid.

They described it as a major threat to the viability of their power plants.

The group said despite investing significantly in ramping up generation capacity since the sector’s privatisation in 2013, the absence of firm contracts, poor enforcement of power purchase agreements, and persistent non-payment of invoices have crippled their operations.

The companies also pointed out that hopes of being settled through external support mechanisms like the World Bank’s Power Sector Recovery Operation have been dashed due to other market players’ failure to meet required performance targets.

The statement reads, “GenCos, on their part as responsible investors with patriotic zeal, have made large-scale investments and have continued to demonstrate absolute commitment by ramping capacities in line with their contract over these 10 years, amid system constraints, policies & regulations that are not investor-friendly, increasing debts owed by the FGN without a clear financing plan, a lack of firm contracts and a market without securitisation but based on best endeavours, thereby hampering future planning.“

Notwithstanding this and other severe difficulties the GenCos have battled with since takeover in 2013, they have kept to the terms of their contractual agreements by ramping up capacity, which has been largely constrained systemically.“

The GenCos expectations of being settled through external support, such as the World Bank PSRO, have also been dampened due to other market participants’ inability to meet their respective distribution-linked indicators, enshrined in the Power Sector Recovery Program.”

To avert a total shutdown of power generation across the country, the GenCos issued a list of urgent demands to the Federal Government: The GenCos warned that unless urgent and coordinated steps are taken to address the liquidity crunch, Nigeria’s electricity supply could collapse, with dire consequences for national security, economic growth, and public welfare.

The GenCos added, ” In light of the severity of the issues highlighted above, the GenCos are requesting that immediate and expedited action be taken to prevent national security challenges that may result from the failure of the GenCos to sustain steady generation of electricity for Nigerians.

“The 2024 collection rate has dropped below 30 per cent, and 2025 is not any better, severely affecting GenCos’ ability to meet financial obligations.

Tax and Regulatory Challenges: High corporate income tax, concession fees, royalty charges, and new FRC compliance obligations are further straining GenCos’ revenue.

GenCos are currently owed about N4 trillion (N2 trillion for 2024 and N1.9 trillion in legacy debts). No possible solutions, including cash payments, financial instruments, and debt swaps, are in sight.

“The 2025 government budget allocates only N900 billion, raising concerns about its adequacy to cover arrears and future payments.

The power generated by GenCos has continued to be consumed in full without corresponding full payment, notwithstanding the commencement of the Partial Activation of Contracts in the NESI, which took effect from July 1, 2022; the minimum remittance order; bilateral market declaration; waterfall arrangement; the risks of inflation; forex volatility with no dedicated window to cushion the effect of the forex impact; or the supplementary MYTO order, which leaves about 90 per cent of GenCos monthly invoices unmet without a bankable securitisation or financing plan.

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

The companies that called for the implementation of payment plans to settle all outstanding GenCos invoices observed that “the flow of money within the power industry is one of the fundamental problems preventing Nigerians from enjoying continued and sustainable improvement in electricity supply”.

Meanwhile, the Managing Director and Chief Executive Officer of the Niger Delta Power Holding Company of Nigeria, Engr Jennifer Adighije, says President Bola Tinubu is intervening to settle the liquidity crisis in the power sector.

Adighije stated this recently while being honoured as the Young Achiever of the Year at the 2025 Energy Times Awards for her contributions to the power sector.

Speaking with newsmen at the award presentation dinner, the managing director described the award as a humbling experience, especially for a new management team that has been in the office for less than a year.

According to her, the central issue in the power sector is about liquidity, and once there is enough cash flow, the issue will be resolved.

Business

Bank of Ghana launches new Cedi notes

The aim is to make cash transactions more convenient and strengthen confidence in the cedi.

Published

21 hours ago

November 13, 2026

OCHEFA

68 Views

The Bank of Ghana has launched the Ghana Cedi Heritage Series, a new set of smaller banknotes with enhanced security features, as part of efforts to modernise its currency.

The notes will enter circulation on December 1, 2026, replacing the existing designs.

The central bank officially launched the series on Thursday, November 12, 2026.

It said the redesigned notes have improved durability, more portable sizes and stronger security features.

The aim is to make cash transactions more convenient and strengthen confidence in the cedi.

A close examination of the new Heritage Series shows that only Dr Nkrumah retained a place on the new banknotes, while the other five members are absent.

The new series features other prominent Ghanaian personalities whose contributions span politics, religion, education, public service, culture and international diplomacy.

The Heritage Series, however, adopts an individual-portrait approach, recognising personalities whose contributions helped shape Ghana’s political, educational, cultural and diplomatic history.

Here are prominent Ghanaian personalities featured on new Ghana cedi notes:

On the GH¢1 note is Agnes Oforiwa Tagoe-Quarcoopome, who is said to be the first Makola woman to open a bank account with the then Standard Bank of West Africa (now Standard Chartered Bank).

Cardinal Peter Porekuu Dery, a revered Catholic priest from Zimuopare (Ko), near Nandom in the Upper West Region of Ghana back in the 1950s, features on the GH¢2 denomination.

James Emmanuel Kwegyir-Aggrey is featured on the GH¢5 note, with Justice Annie Jiagge, the first woman in Ghana and the Commonwealth of Nations to become a judge, appearing on the GH¢10 banknote.

The GH¢20 note features Dr Ephraim Amu, the composer of the Twi version of the Ghana national anthem, Yɛn Ara Asaase Ni, while Theodosia Salome Okoh, the designer of the Ghana flag, is on the GH¢50 denomination.

Former United Nations Secretary-General Kofi Annan features on the GH¢100 note, while Ghana’s first President, Dr Kwame Nkrumah, appears on the GH¢200 banknote.

Dr Nkrumah’s appearance on the GH¢200 note represents a change from the existing series, where his portrait appeared on the ceremonial GH¢2 denomination as part of the collective image of the Big Six.

The Big Six became prominent figures in Ghana’s independence struggle following their arrest by the British colonial authorities in 1948 after disturbances in Accra.

Business

Naira Exchange Rates Friday,13 Nov 2026

The black market (parallel market) exchange rates is the most searched forex query in Nigeria.

Published

21 hours ago

November 13, 2026

OCHEFA

69 Views

BLACK MARKET RATES

₦1435 DOLLAR (USD)

₦1870 POUND (GBP)

₦1540 EURO (EUR)

₦950 CANADIAN DOLLAR (CAD)

₦70 SOUTH AFRICAN RAND (ZAR)

₦350 UAE DIRHAM (AED)

₦100 GHANAIAN CEDI (GHS)

₦190 CHINESE YUAN (CNY)

₦2240 WEST AFRICAN CFA F.(XOF)

₦2180 CENTRAL AFRICAN CFA F.(XAF)

₦820 AUSTRALIAN DOLLAR (AUD)

Business

Exclusive:10,000MW Electricity Ambition Continues Under New Political Campaigns

Published

21 hours ago

November 13, 2026

OCHEFA

59 Views

By Ochefa

•Minister of Power Chief Olasunkanmi Joseph Tegbe

The Federal Government past and present has spent nearly two decades pursuing essentially the same 10,000MW electricity benchmark.

This is understandable given that electricity remains one of the biggest obstacles to industrial development in Nigeria.

That’s why in the ongoing 2027 election campaigns , the top three parties – APC, ADC, and the NDC recognise the importance of electricity to the economy, although their specific commitments differ.

APC: Plans to scale electricity generation towards 10,000MW, strengthen transmission and distribution, and expand clean energy access.

ADC: Emphasises energy-sector reforms and regional connectivity to support production and industrialisation.

NDC: Proposes expanding power generation and distribution. The NDC campaign blueprint specifically identifies an additional 10,000MW of power within four years as a target.

However, checks by Ohibaba.com shows that successive administrations have set the 10,000MW as a goal but achieving the target has remained elusive.

Here are the records:

Nigeria’s 10,000-megawatt (MW) electricity generation target dates back to the electricity expansion programme of the Olusegun Obasanjo administration (1999–2007), although successive governments adopted, modified and repeatedly renewed the target.

1. Obasanjo administration:

The original 10,000MW ambition (2005–2008).The roots of the 10,000MW target can be traced to the Federal Government’s efforts to expand electricity generation through the National Integrated Power Projects (NIPP).

Following the failure of private investment to deliver sufficient electricity, the government began directly funding new power plants from 2002.

In 2005, construction commenced on several NIPP power stations, including:

Alaoji

Geregu

Omotosho

Olorunsogo

Ihovbor

Egbema

Gbarain.

The government’s ambition was to push installed generation capacity beyond 10,000MW by the end of 2008.

An earlier policy document, however, had already established a more specific target of achieving 10,000MW of operable generation capacity by the end of 2011.

2. Yar’Adua administration: 10,000MW by 2011

The Umaru Musa Yar’Adua administration inherited the NIPP projects and retained the 10,000MW ambition.

A 2009 African Development Bank report on Nigeria’s Economic and Power Sector Reform Programme confirmed that the Federal Government expected to achieve 10,000MW of operable generation capacity by the end of 2011.

The strategy involved rehabilitating existing power stations and completing new plants under NIPP.

3. Jonathan administration: Target raised to 16,000MW

President Goodluck Jonathan’s Transformation Agenda (2011–2015) went beyond the 10,000MW benchmark.

The administration set the following targets:5,000MW by 2011.6,000MW by 2012.16,000MW by 2015.

However, by December 2012, actual generation had reached approximately 4,500MW, falling short of the 10,000MW target for that period.

4. Buhari administration: 10,000MW distributable electricityIn March 2016, President Muhammadu Buhari publicly announced a target of delivering 10,000MW of distributable electricity within three years.

He also promised to add 2,000MW to the national grid in 2016.

This was against the backdrop of the APC’s 2015 campaign manifesto, which promised to expand electricity generation and distribution to 40,000MW within four to eight years.

The distinction is important: Buhari’s 10,000MW promise referred to distributable power, not merely installed generation capacity.

5. Subsequent administrations.

The 10,000MW ambition continued under subsequent governments.

In 2021, Vice-President Yemi Osinbajo said investments exceeding $3 billion in generation, transmission and distribution infrastructure would put Nigeria on the path to achieving 10GW of electricity.

The National Development Plan 2021–2025 also incorporated a 10,000MW electricity target.

The historical significance: Why has 10,000MW remained elusive?

The recurring 10,000MW target exposes a fundamental problem with Nigeria’s electricity policy: successive administrations have announced ambitious generation targets without resolving the structural constraints affecting the entire electricity value chain.

The bigger question is how did countries like Egypt, South Africa, and Morocco attained energy security? Nigerian leaders can borrow a leaf from their strategy.

These include:

1. Gas supply constraints: Inadequate gas supply to thermal power stations.

2. Transmission limitations: Inability of the national grid to evacuate all available generation.

3.Distribution bottlenecks: Insufficient distribution infrastructure to deliver electricity to consumers.

4. Funding challenges: Persistent liquidity problems across the electricity market.

5 . Infrastructure deficits: Poor maintenance and inadequate investment in power infrastructure.

According to the Nigerian Electricity Regulatory Commission (NERC), as of October 2026, Nigeria’s installed electricity generation capacity is approximately 13,625 MW, but the amount of electricity actually available for generation is significantly lower.

What does this mean?

Nigeria has a significant gap between installed capacity and actual electricity generation.13,625 MW:

What the installed generating infrastructure can theoretically produce.4,744 MW:

What was available for dispatch in October.4,047 MW: Average electricity actually generated per hour.

This means Nigeria generated only about 30% of its installed generation capacity on average during October 2026.

Major challenge

1.The gap is associated with:Inadequate natural gas supply to thermal power plants.

2. Ageing generation infrastructure.

3.Poor maintenance and equipment failures.

4. Transmission infrastructure limitations.

5. Financial and operational challenges in the electricity market.

The big question is how did African countries like Egypt, South Africa, and Morocco attained energy security? Nigerian leaders can borrow a leaf from their strategy.

Electricity Generation Capacity of Five African Countries – 2026

Source: Afreximbank Power Industry Report 2022.