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From Isaac Anumihe, Abuja
The Managing Director and Chief Executive Officer of Mainstream Energy Solutions Limited, Lamu Audu, has disclosed that foreign electricity customers from neighbouring countries owe Nigeria’s power generation companies (GenCos) over $8.4 million for energy supplied in the second quarter of 2025.
He made the disclosure in Abuja yesterday, during the 10th anniversary celebration of the Association of Power Generation Companies (APGC).
According to him, the debt came from electricity exports to Benin Republic, Togo and Cameroon.
He clarified, however, that Niger Republic had been consistent with its payments until recently, when it reportedly encountered domestic fiscal challenges.
“Niger has been quite regular in meeting its payment obligations, but it appears the government may be facing internal issues that affected its most recent remittance,” Audu explained.
The Mainstream boss lamented that such international payment defaults further strain the liquidity of Nigeria’s already fragile power sector.
In her address, the Managing Director of APGC, Dr. Joy Ogaji, revealed that GenCos are battling over N4 trillion in accumulated debts across several categories, including unpaid invoices, interest payments under Power Purchase Agreements (PPAs), and outstanding capacity payments.
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Other debt components, she said, include deemed capacity payments, foreign exchange losses, rising gas costs, and machine maintenance expenses worsened by grid instability.
“The lack of liquidity makes it difficult for GenCos to service their debts, maintain operations, or attract new investments.
“We have cases where GenCos had to look outside the electricity market just to fund gas and keep generation running.”
She stressed that the huge debts and poor credit ratings are eroding investor confidence and crippling expansion plans in the power sector.
According to her, projects like the National Integrated Power Project (NIPP) have struggled to attract private participation due to persistent financial bottlenecks.
To address the situation, GenCos are advocating stronger coordination within the Nigerian Electricity Supply Industry (NESI). They urged regulators to focus on closing the gap between installed and available capacity across the generation, transmission, and distribution value chain.
“Transmission and distribution performance should form the first line of evaluation and regulation,” the GenCos stated, adding that “using tested capacity as a benchmark will enhance tariff development and promote accountability across the sector.”
