Cynthia Ezegwu
The Federal Government has constituted a committee to address the payment of outstanding debts owed to Power Generation Companies (GenCos) and to establish a sustainable payment mechanism to prevent future accumulation.
Permanent Secretary in the Ministry of Power, Mahmuda Mamman, disclosed this on Monday in Abuja during the 10th-anniversary celebration of the Association of Power Generation Companies of Nigeria (APGC).
Mamman, represented by a Director in the Ministry, Mrs. Evangeline Babalola, said the committee’s mandate includes clearing existing debts and ensuring long-term financial stability in the power sector.
“In recognition of the critical importance of resolving this issue for the sustainability of our power sector, Mr. President has constituted a committee specifically mandated to address the payment of outstanding debts owed to the GenCos,” Mamman said.
He commended the generation companies for their resilience and patriotism despite the financial constraints, noting that their continued operations have kept Nigeria’s electricity grid functional.
“You have not abandoned your posts in spite of severe liquidity challenges that would have forced closure in any other industry. This is not just business; this is patriotism in action,” he said.
Mamman added that President Bola Tinubu was fully aware of the liquidity challenges facing the Nigerian Electricity Supply Industry (NESI) and remained committed to finding lasting solutions.
Also speaking, Chairman of the Senate Committee on Power, Senator Enyinnaya Abaribe, praised the APGC for its role in shaping energy policy and promoting stability in the sector over the past decade.
He said the association had navigated complex regulatory challenges while fostering collaboration among stakeholders across the electricity value chain.
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“Through persistent engagement and strategic advocacy, the association has shaped discourse around energy security, investment attraction, and operational sustainability within the power generation landscape,” Abaribe said.
Chief Executive Officer of APGC, Joy Ogaji, highlighted the association’s achievements over the past 10 years, including promoting transparency, sustainability, and policy reforms in the power sector.
“From humble beginnings, APGC has grown into a respected, results-driven association that unites generation companies under a common purpose — to power Nigeria’s future sustainably and responsibly,” she said.
Ogaji added that despite recurring challenges such as gas shortages, liquidity issues, and grid limitations, GenCos remain committed to driving Nigeria’s energy transformation through persistence and collaboration.