Abuja-Power generation companies in Nigeria, GenCos, yesterday raise the alarm over the imminent collapse of their operations, following a huge debt of N2 trillion and an estimated funding gap of N1.7 trillion contained in the 2024 Multi-Year Tariff Order.
The GenCos in a statement issued by their board Chairman, Col. Sani Bello, retd, said the companies have continued to bear the full brunt of the liquidity challenges facing the Nigerian electricity market. He said: “Notwithstanding this and other severe difficulties the GenCos have battled with since takeover in 2013, they have kept to the terms of their contractual agreements by ramping up capacity which has largely suffered systemic constraints.
“The power generated by GenCos have continued to be consumed in full without corresponding full payment, notwithstanding the commencement of the Partial Activation of Contracts in the NESI which took effect from July 1, 2022, the minimum remittance order, bilateral market declaration, waterfall arrangement, the risks of inflation, forex volatility with no dedicated window to cushion the effect of the forex impact, the supplementary MYTO order which leaves about 90 per cent of GenCos monthly...