The Federal Government has assured that a comprehensive framework is being developed to offset the N4trillion owed to the Generation Companies (GenCos) and prevent future accumulation of debts in the power sector.
Permanent Secretary, Ministry of Power, Mahmuda Mamman, disclosed this on Monday at the opening of the Two-Day 10th Anniversary Celebration of the Association of Power Generation Companies (APGC), with the Theme, “A Decade of Powering Progress: Driving Nigeria’s Energy Transformation”, holding in Abuja.
The milestone event, which was organized by the APGC in collaboration with the NESI Market Participant & Stakeholders (NMPSR), brought together industry stakeholders to chart a way forward for the nation’s power sector.
Speaking at the event, Mamman noted that President Bola Tinubu in his characteristic responsive leadership style, is fully aware of the liquidity challenges facing the Nigerian Electricity Supply Industry (NESI), particularly the debt burden on generation companies.
He said in recognition of the critical importance of resolving the issue for the sustainability of the power sector, Mr. President has constituted a committee specifically mandated to address the payment of outstanding debts owed to the GenCos.
According to him, “This committee has been charged with the responsibility of developing a comprehensive framework for clearing these debts and establishing sustainable payment mechanisms that will prevent such accumulations in the future.”
The Permanent Secretary, who was represented by the Director, Planning Research and Statistics of the Ministry, Evangeline Babalola, submitted that the government recognizes that access to reliable and affordable electricity remains one of Nigeria’s most pressing developmental challenges.
Noting that the gap between the current generation capacity and national demand continues to constrain economic productivity, limit social development, and affect the quality of life of millions of Nigerians.
This reality, he added, underscores the urgency and importance of the work that APGC and its members undertake daily as the foundation upon which the nation’s energy future must be built.
Mamman maintained that the transformation of desirable Nigeria’s energy sector cannot be achieved without financially healthy and viable generation companies.
Saying that as the government takes steps to address the systemic challenges in NESI, it counts on the association’s continued partnership, technical expertise, and innovative spirit to drive the sector forward with lasting impacts on the nation’s development trajectory.
Speaking on the role of Association in an effective and viable NESI, the Managing Director of the Nigerian Independent System Operator (NISO), Engr. Abdullahi Mohammed, said the event was not merely a ceremonial milestone, but a moment for deep reflection on how structured associations like APGC could continue to drive sectoral transformation while maintaining the delicate balance between collective advocacy and individual accountability within the nation’s evolving electricity market. Noting that Industry associations are integral to the maturity of any electricity market.
Engr. Mohammed explained that the creation of APGC in 2014, shortly after Nigeria’s power sector privatization, represented a turning point.
“It provided the newly privatized generation companies a unified and credible institutional framework to: Articulate shared operational and commercial challenges; Engage constructively with sector stakeholders that now includes the NISO; and Contribute technical insights to policy and market development,” he said.
The NISO boss said the Operator is willing to work with the APGC and other associations in the industry to deepen efficiency and grid reliability.
Also speaking, the Chairman, Senate Committee on Power, and Senator representing Abia South senatorial district, Enyinnaya Abaribe, said as the APGC celebrates the milestone achievements, the government must also acknowledge the formidable challenges that continue to confront the sector.
“Issues of infrastructure deficit, tariff structures, gas supply constraints, and financial sustainability remain pressing concerns that demand continued collaborative action. However, it is precisely in confronting these challenges that APGC has demonstrated its greatest value, providing a platform for collective problem-solving and unified advocacy that amplifies the voice of individual Generation Companies,” he noted.
Looking ahead, the Senator said: “the future of Nigeria’s energy transformation rests upon our collective commitment to innovation, investment, and inclusive stakeholder engagement. The power generation sector remains fundamental to our national development aspirations, and the role of APGC in facilitating dialogue, promoting best practices, and advocating for enabling policies cannot be overstated.
“As our nation pursues ambitious goals of energy access, economic diversification, and industrial growth, the contribution of Generation Companies and their representative association will be absolutely critical.”
He commended the leadership and members of APGC for their resilience, professionalism, and dedication over the past decade. Adding that the association’s commitment to advancing the interests of the power generation sector while maintaining constructive engagement with all stakeholders is truly commendable.
On his part, the Chairman, House Committee on Power, and Member representing Ika North East/Ika South Federal Constituency in the House of Representatives, Rt. Hon. Victor Nwokolo, reiterated President Bola Tinubu’s unwavering commitment to resolving the GenCos’ liquidity crisis, especially the N4 Trillion debt.
Represented by the Member representing Southern Ijaw Federal Constituency of Bayelsa State, Hon. Rodney Ambaiorei, the Chairman called for collaboration among stakeholders to address mountainous sector challenges.
Earlier, in her Welcome Address, APGC Managing Director, Dr. Joy Ogaji, said the association was established not only as a voice but as a bridge for the power sector, noting that the sector is still facing endemic challenges hindering the progress of power generation and distribution in the country.
“Ten years ago, the power sector stood at the crossroads of transition. The privatization of 2013 opened new doors, but also new uncertainties. Generation Companies (GenCos) were born into an evolving market,filled with promise, yet fraught with challenges: liquidity shortfalls, gas constraints, infrastructure bottlenecks, and policy inconsistencies.
“In that moment of uncertainty, APGC emerged, not just as an organization, but as a voice, a bridge, and a conscience for Nigeria’s power generation industry.
“From those humble beginnings, nurtured by visionaries and powered by persistence, we have grown into a respected, results-driven association, one that advocates, educates, and unites the generation companies under a common purpose: to power Nigeria’s future sustainably and responsibly,” she recalled.
Dr. Ogaji disclosed that over the past decade, the APGC has remained unwavering in its mission to provide a level playing field for members, share knowledge, and promote best practices that enhance operational excellence and policy integrity within NESI.
“Through constructive dialogue and firm advocacy, APGC has: Engaged government, regulators, and market operators to improve performance,liquidity, market transparency, and payment discipline, Strengthened industry collaboration between GenCos, gas suppliers, NBET, and the Transmission Company of Nigeria, Promoted discussions on tariff rationalisation, contract sanctity, and investor protection, and Supported capacity-building initiatives and represented GenCos’ collective interests at national and international energy dialogues,” she enumerated.
