The Nigerian Senate has raised urgent concerns over the deepening financial crisis in the nation’s electricity sector, revealing that the federal government is accumulating nearly N200 billion in unpaid bills to power generation and distribution companies every month.
This troubling situation was revealed by Senator Enyinnaya Abaribe, who chairs the Senate Committee on Power. He spoke during a three-day retreat held in Ikot-Ekpene, Akwa Ibom State. The event, organized in partnership with the Nigerian Electricity Regulatory Commission (NERC), brought together key players in the power sector to address pressing issues threatening the stability of the industry.
Senator Abaribe noted that no payments have been made to electricity generation companies (Gencos) or distribution companies (Discos) so far in 2025. As a result, there is now a backlog of N800 billion in tariff shortfalls, which adds to an already staggering N3 trillion debt owed to the Gencos.
“There’s a liquidity crisis in the power sector. The generating companies are owed so much, the distribution companies are also owed so much,” Abaribe said. “The tariff shortfalls that we have mean that every month the government owes N200 billion in payments, and for this year, 2025, no payment has been made.”
He further noted that the chain of debt does not end with the electricity companies. Since these companies depend on gas suppliers to fuel their power plants, the non-payment of debts poses a serious threat. If gas companies stop supplying due to unpaid bills, it could plunge the country into deeper power shortages.
Despite these challenges, Senator Abaribe expressed cautious hope, urging government authorities to make tough choices. “Do we take the decision to subsidise fuel… or do we see the decision to subsidise electricity that goes to every one of us in terms of production. So that’s our choice to make.”
Minister of Power, Adebayo Adelabu, also addressed the gathering. He gave a brief account of the gains under the current administration, including an increase in electricity generation capacity.
However, he admitted that major issues like poor funding and the widespread vandalism of power infrastructure continue to hinder progress. “Only in this country are energy equipment being vandalised in such magnitude,” Adelabu noted.
Speaking on behalf of Akwa Ibom State Governor Umo Eno, Senator Akon Eyakenyi stressed the importance of stable electricity for economic development. She noted that many small businesses rely heavily on power supply to grow and sustain operations.
