The Chief Executive Officer of the Association of Power Generation Companies, GENCOs, Dr Joy Ogaji, has said the Federal Government’s N501 billion power sector bond is insufficient to settle the mounting legacy debt owed to electricity generation companies.
Speaking during an interview on Arise Television on Thursday, Ogaji disclosed that the power sector’s legacy debt, which stood at N4 trillion in December 2024, is projected to hit about N6.6 trillion by the end of February 2026.
According to her, the debt burden has continued to rise by about N200 billion monthly, worsening liquidity challenges in the sector.
“As of December 2024, it was N4tn. If you calculate N200bn times 12, you know the figure for 2025. And now we are currently in February. So currently it’s above N6tn. We’re looking at about N6.6tn by the end of this month. So that is the figure,” she said.
Ogaji warned that the growing indebtedness could push Nigeria’s power sector towards total collapse and further deepen the country’s electricity crisis if urgent action is not taken.
She noted that President Bola Ahmed Tinubu had earlier pledged to clear the N4 trillion debt but said the promise was cut short to N501 billion.
Recall that the federal government launched a N501 billion bond program which recorded full subscription in January 2026.
Nigeria has continued to grapple with persistent power shortages despite the privatization of its generation and distribution segments. Although the country has an installed capacity of about 15,000 megawatts, actual electricity generation has fluctuated between 2,000 and 4,000 megawatts, leaving millions of households and businesses struggling with an unreliable supply.
Ogaji urged the government to develop a permanent, practical, and sustainable solution to clear the legacy debt and stabilize the power sector.
N501bn bond not enough to clear N6.6trn power debt—GenCos warn of blackout
