The Nigerian Senate has raised concerns over the Federal Government’s escalating electricity debt, which has increased by ₦800 billion in 2025 alone.
This surge is attributed to the government’s failure to make any payments to power generation companies (GenCos) since the beginning of the year, resulting in a monthly shortfall of ₦200 billion.
Senator Enyinnaya Abaribe, Chairman of the Senate Committee on Power, highlighted that this recent debt adds to an existing liability exceeding ₦3 trillion owed to GenCos.
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The accumulating debts are causing a liquidity crisis in the power sector, affecting both generation and distribution companies. Furthermore, GenCos are indebted to gas suppliers, who are critical to power generation, exacerbating the sector’s financial instability.
Minister of Power, Adebayo Adelabu, emphasised the need for substantial investment to revitalise the power sector, estimating that $10 billion (approximately ₦63 trillion) is required. He called for both local and foreign investments to address the sector’s challenges, including infrastructure deficits and inadequate funding.
The Senate is advocating for urgent reforms and financial interventions to prevent a total collapse of Nigeria’s power sector. Proposed measures include ensuring timely government funding to cover tariff shortfalls and implementing sustainable financial models to support the sector’s viability.
