Nigerian GenCos Paid Less Than 40% of 2024 Invoices
The Nigerian Electricity Regulatory Commission (NERC) recently
disclosed that power generation companies (GenCos) have received
less than 40% of the value of their 2024 invoices. This has led to
severe liquidity crisis, which has left them struggling to meet
financial obligations, sustain operations, and procure essential
spare parts.
The GenCos had earlier complained of a cumulative receivable of
N2 trillion and a projected funding shortfall of N1.7 trillion
under the 2024 Multi-Year Tariff Order. Regulatory measures, such
as minimum remittance orders and waterfall arrangements, have
failed to resolve the crisis.
This debt has also impacted the GenCos ability to pay their gas
suppliers as well as invest in increasing capacity and other
relevant infrastructure. It also underscores the fragility of
Nigeria's power sector and emphasises the need for urgent
intervention in order to ensure continuous provision of
