Nigeria’s power sector has recorded a significant milestone with electricity generation reaching 5,713.60 megawatts—the highest output in four years. However, behind this achievement lies a deep-seated crisis as Generation Companies (Gencos) decry the Federal Government’s failure to settle an outstanding debt of N4.7 trillion.
Reflecting on past challenges, the power sector has long struggled with liquidity issues, inadequate infrastructure, and policy inconsistencies. The last time Nigeria’s power generation neared this level, stakeholders hoped for a steady rise in supply. However, the sector soon plunged into turmoil due to poor liquidity management, erratic payments, and generation constraints. The current surge in output is reminiscent of previous cycles where brief improvements masked deeper financial instability.
Despite speculations that recent tariff hikes for Band A customers have injected fresh funds into the sector, Gencos insist that the financial hardship persists. “We are seriously suffering,” one Genco executive lamented, emphasizing that the increased power generation has not translated into improved liquidity. This echoes past grievances where power producers were expected to sustain operations despite mounting unpaid debts.
For many Nigerians, the celebration of 5,713MW is a stark reminder of the country’s energy deficit. With over 200 million citizens, a power output far below the nation’s demand is seen as inadequate. Critics argue that the government’s focus should be on ensuring a financially sustainable power sector rather than celebrating marginal increases.
The Transmission Company of Nigeria (TCN) announced that this new peak was successfully transmitted, surpassing the 5,543MW recorded on February 14, 2025. While this milestone suggests potential improvements, history warns that without resolving financial bottlenecks, the sector risks another cycle of setbacks.
As Gencos demand urgent government action, industry experts reflect on past policy missteps that have left Nigeria’s power sector in a precarious state. Will the government heed the warning this time, or will history repeat itself?
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