GenCos unpaid invoices hit N500bn

The 26 electricity Generation Companies (GenCos) in Nigeria have said the federal government is owing them about N500bn debt, just as they spend N36 billion monthly to produce electricity.

The Executive Secretary, Association of Power Generation Companies (APGC), Dr Joy Ogaji, who revealed this in Abuja, also said the generation firms support FG’s call for a centralised revenue account which would promote transparency in the sector.

Ogaji said the GenCos were not consulted by government on the Nigeria Bulk Electricity Trading Plc (NBET) N701bn fund meant to ease generation liquidity issues between January 2017 and 2019. She hinted that the GenCos get over N36bn monthly invoice on gas and other services, and that the N701bn will not be enough for just two years of adequate power generation.

She said about N100bn of the debt was owed the GenCos between November 1, 2013 to January 2015 by the Market Operator, a section in the Transmission Company of Nigeria (TCN). The rest she said is owed by NBET.

The GenCos spokesperson said the 11 Distribution Companies (DisCos) are trustees on revenue collection in the electricity market. They remitted only 30 per cent of their monthly energy invoices in 2016, and that added to the liquidity constraints affecting power generation.

She said the fund of DisCos is not their personal money and that the poor remittances from them has crippled the valuechain from meeting up with gas obligations and more power generation.