The Federal Government (FG) is actively working on a comprehensive framework to resolve the historical debts owed to the nation's Power Generation Companies (GENCOs), while also implementing measures to prevent the recurrence of such liabilities in the future.
This significant move follows a high-level summit bringing together representatives from the Federal Ministry of Power, members of the Senate and House Committees on Power, and the GENCOs themselves.
The meeting was designed to find sustainable solutions for the persistent issues plaguing the generation segment of Nigeria's electricity value chain.
Addressing the Energy Gap
The summit, themed "A Decade of Powering Progress: Driving Nigeria’s Energy Transformation," highlighted that the substantial gap between the country's current electricity generation capacity and the national demand continues to hinder economic growth. Stakeholders underscored the urgent necessity of tackling major challenges, including:
* Infrastructure deficit
* Unsustainable tariff structures
* Gas supply constraints
* Financial stability
All parties called for strong industry collaboration to overcome these obstacles.
GENCOs Pledge Collaboration and Reform
In response, the power Generation Companies committed to sustained engagement with the government, regulators, and market operators. Their focus will be on boosting performance, improving liquidity, enhancing market transparency, and enforcing payment discipline.
They also pledged to strengthen ties with key partners, including gas suppliers, the Nigeria Bulk Electricity Trading (NBET), and the Transmission Company of Nigeria (TCN).
The two-day summit served as a critical opportunity to reflect on the first ten years of power generation under Nigeria's privatized sector and to define a clear path toward a more robust and reliable energy future.
