Power Generation Companies (GenCos) are urging the Federal Government to address the N2trn electricity debt, emphasizing that 90 percent of their monthly invoices remain unpaid.

They requested that “immediate and expedited action be taken to prevent national security challenges that may result from the failure of the GenCos to sustain steady generation of electricity for Nigerians,” lamenting the fact that the problem is currently jeopardising the continued operation of their power generation plants.

In a statement released on Sunday, Colonel Sani Bello (retd.), the board chairman, stated that the generation companies (GenCos) owe approximately N2 trillion for the electricity they produced, fed into the national grid, and were used by end consumers.

And this is in addition to the over 1.7 trillion naira, funding gap created in the recent supplementary MYTO order 2024 without a designated fund to fill the gap.

The statement read, “Even though the supplementary MYTO order leaves about 90% of GenCos monthly invoices unmet without a bankable securitisation or financing plan, the power generated by GenCos has continued to be consumed in full without corresponding full payment.

“The GenCos therefore called on the Federal Government and key stakeholders to urgently address the issue of inadequate payment for electricity generated by them and consumed on the national grid, insisting that the liquidity challenge threatens the continued operation.

“GenCos are of the position that the liquidity challenge threatening the continued operation of their power generation plants must be addressed urgently, and sustainably too. Besides being owed huge debts, GenCos also are operating under very harsh monetary and fiscal conditions, occasioned by the economic realities that face the country today.”

Continuing, the group said in the statement that, “The flow of money within the power industry is one of the fundamental problems preventing Nigerians from enjoying continued and sustainable improvement in electricity supply.

“Expeditiously solving these issues would enable GenCos to meet their critical needs which would, in turn, ensure that they sustainably generate power, to enable Nigerians to have better access to reliable electricity supply. GenCos would like to re-emphasise that this request requires urgent attention.”

The group stated further, “The power generated by GenCos has 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% of GenCos monthly invoices unmet without a bankable securitisation, or financing plan. This situation has dire consequences for the GenCos and by extension the entire power value chain.”

The group further reaffirmed that “GenCos are currently owed over two trillion Naira for the power they generated, put unto the national grid, and consumed by end users.

“This is in addition to the over 1.7 trillion naira, funding gap created in the recent supplementary MYTO order 2024 without a designated fund to fill the gap. This huge debt outlay is now greatly inhibiting GenCos ability to meet their obligations to lenders, O&M operations, necessary maintenance, spare parts procurements, employee-related obligations etc.

“The GenCos expectations of being settled through external support such as the World Bank PSRO has also been dampened due to other market participants’ inability to meet their respective distribution linked indicators (DLIs), enshrined in the Power Sector Recovery Program (PSRP). Access to forex is another problem given that major operation and maintenance needs in the generation subsector are dollarized, the importance of a specialised window or stable dollar allocation option for the GenCos cannot be overemphasized.”

The statement also quoted the group as saying, “GenCos are of the position that there is a need for a coordinated approach by all stakeholders in the NESI to address the liquidity issue realistically and sustainably in the power sector so that Nigerians can have access to reliable electricity supply.

“In the light of the severity of the issues highlighted above, the GenCos are requesting that immediate and expedited action be taken to prevent national

security challenges that may result from the failure of the GenCos to sustain steady generation of electricity for Nigerians.

“GenCos liquidity challenges are further worsened by the various policies introduced such as the payment waterfall in the NESI, which deprioritizes payment to GenCos”.

Alex Otti, the executive governor of Abia State, says no stone would be left unturned in the search for those involved in the killing of soldiers in the state.

Recall that five soldiers were killed on May 30 by gunmen who were reportedly enforcing the sit-at-home directive of the proscribed Indigenous People of Biafra (IPOB).

The soldiers were ambushed at an army post in Obikabia, Obingwa LGA of the state.

In a statement on Sunday, Kazie Uko, chief press secretary to the governor, said Otti visited the wives of the slain soldiers on Saturday at the headquarters of the 144 Infantry Battalion of the Nigeria Army in Asa, Ukwa West LGA of Abia.

“We, as a government, will continue to condemn this dastardly act, a very irresponsible act committed by criminals, who do not want any good for society,” the governor said.

“It’s very sad, but then, it has happened and because it has happened, we will need to move on, but we cannot move on without identifying those who are responsible.

“It’s as if General Diya was with me at the last place that we went to, where I had promised that we will smoke out whoever is remotely connected to this killing, whoever they are, wherever they are, wherever they run to.

“We are going to work like we have always done, closely with security agencies, particularly the intelligence unit of the security agencies, to ensure that we leave no stone unturned.

“So, I want to reassure the military high command and the leadership of the military in Abia that we are working together to ensure that we bring those people to book.

“The reason I came here (144 Battalion) today is to sympathise with you; to let you know that I feel your pain and I can understand what you’re going through at this time.

“On behalf of the government and people of Abia state, I want to assure you that we are behind you. We know that the military high command will also look after you, but because your husbands died here in Abia, we have adopted you as daughters of Abia and your children as children of Abia.”

The governor also awarded scholarships to children of the deceased up to the completion of their tertiary education.

He thanked Diya for helping to de-escalate the tension in the state and not embarking on a reprisal.

Nigeria’s President, Asiwaju Bola Ahmed Tinubu, says the killing of soldiers in Abia by gunmen is a treasonable offence that must be punished.

Tinubu, in a statement on Saturday, directed the security agencies to fish out the killers of the soldiers and those asking residents to sit at home.

The president described the killings as “unwarranted barbaric and evil acts”.

At least five soldiers were said to have been killed on Thursday by gunmen who were reportedly enforcing the sit-at-home directive of the proscribed Indigenous People of Biafra (IPOB) in the state.

The gunmen opened fire on a military checkpoint at Obikabia junction in Aba, killing the soldiers and setting their patrol vehicles ablaze.

The soldiers were on peacekeeping duty in Aba.

“Our soldiers and the police have the onerous duty to protect all of us from aggressors and non-state actors. Hundreds of them have paid the ultimate price in fulfilment of their duty, while some have experienced the indignity of being manhandled by the people they protect,” the statement reads.

“They surely do not deserve the mindless attacks by unruly elements in our society.”

Tinubu assured that justice will be served, warning perpetrators not to be under any illusion that the government will not act appropriately when the lives of state agents are taken.

“The federal government will come down heavily against those who have made it a habit to needlessly attack the officers and men of our armed forces,” the president said.

“On no account should anyone, under any guise, have the audacity to kill agents of state.

“I want to make it clear that the government of the Federal Republic of Nigeria and the armed forces have the capacity to crush violent non-state actors, making our communities unsafe.

“I urge security agencies not only to fish out the masterminds and perpetrators of the Aba attack but also those calling on people to stay at home. Their action is nothing but a treasonable offence.

“The fact that the security forces are exercising necessary restraints should not be mistaken for weakness.”

Tinubu sympathised with the families of the slain soldiers and the entire armed forces.

The president urged officers on peacekeeping duty not to be discouraged by the unfortunate incident in Aba.

In March, some personnel of the Nigerian army — comprising a lieutenant colonel, two majors, one captain, and 12 soldiers — were killed by youths while on a peace mission at Okuoma community in Delta state.

Tinubu vowed that those who were responsible for the killing of the personnel would not go unpunished.