Categories: EconomyNews

N3.7trn Debt Threatening Our Operations – GenCos

The Power Generation Companies (GenCos) has stated that over N3.7trn debt owed to the companies is threatening their operations and failure to resolve it will lead to the collapse of electricity generation in the country.

A statement signed by its Board Chairman, Col. Sani Bello (Rtd.) stated that Gencos were left to bear the brunt of the liquidity crises in the electricity sector.

Bello said the current Multi-Year Tariff Order ((MYTO) by NERC has further worsened their situation with payment of 9 to 11 percent of services it rendered is paid for by its customers.

The statement said the crises from cash liquidity are on the top burner and has reduced GenCos ability to continue to perform their obligations, thereby threatening to completely undermine the Electricity value chain.

VOP Lagos

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