A Nigerian power-generating company (GenCo) with 230 megawatts of capacity is exiting Nigeria due to a worsening business environment, signalling a deepening liquidity crisis in the country’s power sector.
InsideBusinessNG learnt that the firm, which generates 230 megawatts of electricity and is owed N26 billion by the federal government, planned to sell its barges to an American firm seeking to move the power infrastructure out of Nigeria.
This would reduce the country’s power generation and supply by the company’s 230-megawatt contribution to the national grid.
The development coincides with the sacking of 800 Abuja Electricity Distribution Company (AEDC) workers over the weekend, mirroring the growing challenges in the power sector, including the federal government’s debt to generation companies, which rose from N4 trillion in July 2025 to N6 trillion.
Government payment delays to GenCos have crippled the power sector, and sources familiar with the matter told InsideBusinessNG that the Sapele-based company is finalising an exit plan, which will reduce power-generating capacity by 230 megawatts.
“The company’s operational capacity is hampered by the federal government’s N26 billion debts, which show no sign of being repaid amidst rising inflation”, stated an industry source.
“The government’s silence on debt payment, coupled with their apparent ignorance of struggling businesses, exacerbates the country’s electricity crisis”, he stated.
Despite the government outlining debt settlement measures, including bond issuance, at a critical investor meeting with Power Minister, Bayo Adelabu and President Bola Tinubu on July 25, 2025, the Association of Power Generation Companies (APGC) CEO, Joy Ogaji, stated that the sector still lacks clarity on the bond issuance since July, and continues to face financial difficulties.
“We hear they are working on it, but when will they finish? When will it be issued? We are in November, and yet there is no clarity”.
She noted the lack of clarity and questioned when the allocated N4 trillion, plus an additional N2 trillion that has accumulated, would be effectively utilised, given the continued absence of a sustainable plan. She emphasised that there are more questions than answers regarding the situation.
Government opacity has worsened the liquidity crisis, endangering power generation companies and Nigeria’s efforts to stabilise electricity supply. This debt crisis arises from long-standing liquidity shortfalls, resulting in over N6 trillion in unpaid invoices and legacy debts by 2025 owing to tariff deficits, poor revenue collection, and delayed government payments.
In April, Tony Elumelu, the Chairman of Transnational Corporation Plc (Transcorp), expressed regret that the group had not been able to expand its presence in Nigeria’s power sector, citing the over $400 million federal government debt owed to the company.
Speaking at the company’s 2024 AGM in Abuja, Elumelu stressed that “improved electricity access is crucial for achieving President Tinubu’s $1 trillion economy vision, but Nigeria’s persistent power sector issues could undermine the plan”.
Elumelu stated that access to electricity is crucial for Nigeria’s Renewed Hope agenda, emphasising that resolving the country’s power challenges is both possible and necessary, despite the government’s significant debt to the sector.
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