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FG Scrambles To Avert Gencos Shutdown Over N4tn Debt

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Minister of Power has pledged to address the N4tn electricity debt owed by GenCos, which saw the electricity distribution companies threatening a shutdown on Monday.

Weighing in on the development, the special adviser to the Power Minister, Bolaji Tunji, said the government is aware of the development and is making concrete steps to resolve the lingering issue.

He said as part of the steps taken by the government, the Ministry of Finance will take charge of the payment very soon.

The media aide responding in a chat on Monday said, “We are not unaware of this debt arising from the FG’s commitment on subsidy. Part of the debts are legacy debts, which were on the ground before the Minister of Power assumed office.

“The Minister of Power has repeatedly harped on this, knowing the implication of such debts to the operations of the various power sector stakeholders, especially the GENCOs. The Minister of Power is very much concerned.

“The issue is being discussed with the Ministry of Finance, making a case for how the debt must be paid. We expect the Ministry of Finance to take action on this soon.”

A nationwide blackout looked imminent as the 23 power generation companies warned that they can no longer guarantee a steady electricity supply due to the worsening liquidity crisis in the electricity market, with outstanding debts now exceeding N4tn, comprising N2tn for power supplied in 2024 and N1.9tn in legacy debts.

The firms, under the aegis of the Association of Power Generation Companies, raised the alarm in a statement issued on Monday and signed by the Chairman of the Board of Trustees, Col. Sani Bello (retd.).

They said the debt burden and operational constraints currently facing the companies could force an imminent shutdown of power plants if urgent interventions were not implemented.

The companies noted that plants were being paid less than 30 per cent of monthly invoices for power supplied to the national grid.

They warned that the continued non-payment for electricity generated and consumed on the national grid was pushing the Nigerian power sector towards a total collapse.

The statement, titled ‘Over N4tn unpaid invoices threaten GenCos imminent shutdown’, lamented the lack of a clear financing plan from the Federal Government, alongside worsening fiscal and operational constraints within the Nigerian Electricity Supply Industry.

They also accused the Nigerian Bulk Electricity Trading Plc and other stakeholders of neglecting GenCos in the application of the NESI’s “waterfall arrangement”, which sees other service providers receive 100 per cent of their market invoices while GenCos get as little as 9 per cent to 11 per cent of what is due.

The statement read, “The Power Generation Companies (‘GenCos”) are constrained to issue this press release to draw the attention of the Federal Government and key stakeholders to the need to urgently address the issue of inadequate payment for electricity generated by them and consumed on the national grid, which is currently threatening the continued operation of their power generation plants.

“Against the backdrop of the many challenges facing the power sector in Nigeria, the crises from cash liquidity are on the top burner and have reduced GenCos’ ability to continue to perform their obligations, thereby threatening to completely undermine the electricity value chain.

“In 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.”

Recall that in February, the Minister of Power, Adebayo Adelabu, disclosed that the government owes electricity generation companies and electricity distribution companies over ₦4 trillion in electricity subsidies.

Giving a breakdown, the minister said N2 trillion is owed to GenCos as legacy debt, while another N1.9 trillion is owed to them as part of the electricity subsidy for 2024, while DisCos are owed N450 billion for the 2024 electricity subsidy.

In the statement released under the umbrella of the Association of Power Generation Companies, the GenCos expressed deep frustration over what they described as “inadequate payment for electricity generated and consumed on the national grid. They described it as a major threat to the viability of their power plants.

The group said despite investing significantly in ramping up generation capacity since the sector’s privatisation in 2013, the absence of firm contracts, poor enforcement of power purchase agreements, and persistent non-payment of invoices have crippled their operations.

The companies also pointed out that hopes of being settled through external support mechanisms like the World Bank’s Power Sector Recovery Operation have been dashed due to other market players’ failure to meet required performance targets.

The statement stated, “GenCos, on their part as responsible investors with patriotic zeal, have made large-scale investments and have continued to demonstrate absolute commitment by ramping capacities in line with their contract over these 10 years, amid system constraints, policies & regulations that are not investor-friendly, increasing debts owed by the FGN without a clear financing plan, a lack of firm contracts and a market without securitisation but based on best endeavours, thereby hampering future planning.

“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 been largely constrained systemically.

“Against the backdrop of the many challenges facing the power sector in Nigeria, the crises from cash liquidity are on the top burner and have reduced GenCos’ ability to continue to perform their obligations, thereby threatening to undermine the electricity value chain completely.

“The GenCos expectations of being settled through external support, such as the World Bank PSRO, have also been dampened due to other market participants’ inability to meet their respective distribution-linked indicators, enshrined in the Power Sector Recovery Program.”

To avert a total shutdown of power generation across the country, the GenCos issued a list of urgent demands to the Federal Government:

The GenCos warned that unless urgent and coordinated steps are taken to address the liquidity crunch, Nigeria’s electricity supply could collapse, with dire consequences for national security, economic growth, and public welfare.

The GenCos added, ” In 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.

“The 2024 collection rate has dropped below 30 per cent, and 2025 is not any better, severely affecting GenCos’ ability to meet financial obligations. Tax and Regulatory Challenges: High corporate income tax, concession fees, royalty charges, and new FRC compliance obligations are further straining GenCos’ revenue. GenCos are currently owed about N4 trillion (N2 trillion for 2024 and N1.9 trillion in legacy debts). No possible solutions, including cash payments, financial instruments, and debt swaps, are in sight.

“The 2025 government budget allocates only N900 billion, raising concerns about its adequacy to cover arrears and future payments. 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; or the supplementary MYTO order, which leaves about 90 per cent 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 companies that called for the implementation of payment plans to settle all outstanding GenCos invoices observed 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”.

Meanwhile, the Managing Director and Chief Executive Officer of the Niger Delta Power Holding Company of Nigeria, Engr Jennifer Adighije, says President Bola Tinubu is intervening to settle the liquidity crisis in the power sector.

Adighije stated this recently while being honoured as the Young Achiever of the Year at the 2025 Energy Times Awards for her contributions to the power sector.

Speaking with newsmen at the award presentation dinner, the managing director described the award as a humbling experience, especially for a new management team that has been in the office for less than a year.

According to her, the central issue in the power sector is about liquidity, and once there is enough cash flow, the issue will be resolved.

 

BIG STORY

NLC Directs Unions To Continue FCTA Strike Despite Court Order

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The Nigeria Labour Congress (NLC) has directed its affiliate unions in the Federal Capital Territory (FCT) to continue the ongoing strike by workers of the FCT Administration, despite a court order directing that the industrial action be suspended.

The directive was contained in a circular dated January 27, 2026, and signed by Benson Upah, the acting general secretary of the NLC.

In the circular addressed to presidents and general secretaries of all Abuja-based unions, the NLC said it was “reaffirming and reinforcing” its earlier instructions for workers to sustain the strike action until their demands are fully met.

“We hereby reaffirm and reinforce the directive to all affiliate unions in the FCT to not only proceed with the ongoing action but to intensify and sustain it until all workers’ demands are fully addressed,” the circular reads.

The NLC noted that issues such as unpaid wage awards and promotion arrears, non-remittance of pension and National Housing Fund deductions, as well as alleged intimidation of workers, are yet to be resolved.

“These violations are grave, unacceptable, and incompatible with the principles of fairness, justice, and decent work,” the NLC said.

“Affiliate unions are therefore directed to fully maintain participation in the industrial action; reinforce mobilisation of members for all congress-approved activities; and mobilise members to continuously participate in daily prayer and solidarity sessions from 8:00 am to 5:00 pm at designated venues across the FCT.”

The NLC warned against any withdrawal from the strike at this stage, saying such action would embolden further violations against workers.

“This struggle demands unity, discipline, and unwavering commitment. All affiliates are expected to comply strictly with this directive in the collective interest of the Nigerian working class. An injury to one is an injury to all,” the circular reads.

On Tuesday, a national industrial court in Abuja ordered workers on the payroll of the FCTA to suspend the strike.

Delivering a ruling, Emmanuel Subilim, presiding judge, held that although the matter before the court amounted to a trade dispute, the defendants’ right to embark on industrial action was not absolute.

He held that once a dispute has been referred to the national industrial court, any ongoing strike must cease pending the determination of the case.

 

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BIG STORY

Return To Work Immediately Or Face Legal Action, Wike Tells FCTA Workers As Court Orders Strike Suspension

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The Minister of the Federal Capital Territory, Nyesom Wike, on Tuesday warned striking staff of the Federal Capital Territory Administration to return to work immediately or face legal action, following a National Industrial Court ruling ordering an end to the strike that has disrupted public services in Abuja for over a week.

Briefing journalists shortly after the court’s decision, Wike insisted that the rule of law must prevail and accused political actors of exploiting the industrial action for motives unrelated to workers’ welfare.

“The administration was already in the process of mediation when some politicians hijacked the strike,” he said, adding that several of the workers’ demands were “frivolous” and either unreasonable or already addressed.

Wike said the FCTA approached the court after determining that the strike had been “hijacked by politicians,” despite ongoing dialogue and attention to a substantial number of workers’ concerns.

He highlighted the administration’s efforts to support staff welfare, including salary payments and reforms within the civil service.

The minister disclosed that more than N12bn had just been approved for the payment of January salaries to FCTA workers, describing the move as evidence of the government’s commitment to its workforce.

Pointing to improved revenue performance under his leadership, Wike noted that the FCT had generated over N30bn in internally generated revenue, a significant increase compared with previous years.

He urged workers to recognise reforms implemented by the administration, including the establishment of the Civil Service Commission and infrastructure investments across the territory.

“Workers are largely responsible for the lack of development in states, including the FCT,” he said.

Wike dismissed circulating reports suggesting he had been forced out of his office during protests linked to the strike.

“I was never chased out of the office,” he said, explaining that he had merely stepped out to see President Bola Tinubu off at the airport.

Adopting a firm stance, the minister warned against further disruptions of government operations.

“Anyone who dares to lock the gates again will be made a scapegoat, because the law must be obeyed.”

He alleged that some senior civil service officials had played a role in sustaining the strike, claiming that certain directors were instigating the action, but said this would not prevent the administration from pursuing the right course.

Wike emphasised that engagement between workers and the government did not require direct access to him personally.

“Seeing me in person is not a right,” he said, noting that workers’ representatives had been in discussions with management throughout the dispute.

He concluded by warning that staff who failed to comply with the court order and resume duties immediately would face legal action, signalling a tougher enforcement phase as the FCTA seeks to restore full public services.

Workers of the FCTA, operating under the Joint Union Action Committee, had embarked on an indefinite strike on January 19 over unresolved welfare concerns.

The National Industrial Court issued an interlocutory injunction stopping the strike after an application by Wike.

Justice E.D. Subilim granted the order on January 21 and adjourned the suit to March 23, 2026, for hearing of the substantive case.

Delivering his ruling on Tuesday, Justice Subilim said the defendants’ right to strike was not absolute.

“The defendant’s right to an industrial action is not absolute, but as circumscribed by law,” he said. He prohibited workers from participating in the strike once a dispute had been referred to the court and ordered that any ongoing strike must cease pending determination.

“An order of interlocutory injunction is hereby granted, restraining the defendants and respondents, their agents, representatives… together with all other members of the Joint Unions Action Committee … from further embarking on any industrial action, strike, picketing, lockout, or any other form of obstruction against the claimant, parastatals, and political appointees,” the judge added.

Counsel for the claimants, James Onoja (SAN), hailed the court’s decision, urging the unions to obey the order and return to work while allowing room for mediation.

“We commend the court for making an order for the stopping of the strike… I think this is commendable because it will allow the parties to discuss. Our plea to the Union is to allow industrial harmony. They should go back to work and allow for mediation,” Onoja said.

Counsel for the respondents, Maxwell Opara, described the workers as law-abiding citizens and said he would advise the unions to respect the court order.

“The workers are law-abiding citizens. We are going to advise them to respect the court. The one good thing is that the court has also mandated that we commence mediation, not as a matter of advice, in line with the law… we must comply with it,” Opara said.

JUAC President, Rifkatu Iortyer, confirmed that workers would comply, call off the strike and immediately return to work while continuing to “push for other things.”

“We are law-abiding citizens, and because they have said we should return to work, we are returning to work, pending our next appearance,” she said.

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BIG STORY

Judicial Reforms: Tinubu Proposes Virtual Hearings, Increases Appeal Court Justices To 110

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President Bola Tinubu has transmitted an executive bill to the Senate seeking to amend the Court of Appeal Act to increase the number of justices from 70 to 110.

The proposed amendment also aims to modernize appellate court proceedings through the introduction of virtual hearings and the establishment of an Alternative Dispute Resolution Centre (ADRC) within the Court of Appeal.

Notice of the bill was contained in a letter read by the Senate President, Godswill Akpabio, during the plenary on Tuesday.

In the letter, Mr Tinubu said the amendment is intended to strengthen the institutional capacity, efficiency, and effectiveness of the Court of Appeal in line with constitutional provisions and evolving realities in the justice sector.

“The bill seeks to increase the number of justices of the Court of Appeal from 70 to 110 and provide clarification of judicial structure and seniority,” the president said.

He added that the bill introduces a restructuring of the ranking system within the court, including provisions on the ranking of the president of the Court of Appeal and the determination of seniority among justices.

On the proposed ADR Centre, Mr Tinubu explained that the initiative would allow certain appellate matters to be resolved outside the conventional court process.

“The bill provides for the conduct of proceedings of the Court of Appeal through electronic and audio means, and the establishment of an Alternative Dispute Resolution Centre (ADRC).

“The bill seeks to establish an Alternative Dispute Resolution Centre within the Court of Appeal, where appellate matters may be referred for settlement,” the president added.

Reasons For Reforms

The president said the reforms are designed to improve professional efficiency and legal certainty in appellate practice in line with modern institutional standards.

He noted that the amendment will also update terminology and definitions in the principal Act, including the formal recognition of virtual hearings and modern correctional nomenclature.

“The bill also seeks to update terminology and definitions within the principal Act, including the recognition of virtual hearings and modern correctional nomenclature,” he said.

“It seeks to consolidate interpretative provisions to ensure clarity, consistency, and alignment with the current legal and institutional framework.”

Mr Tinubu noted that the amendment has become necessary due to the increasing workload at the appellate court and is expected to reduce delays in the administration of justice, strengthen access to justice, and promote public confidence in the judiciary.

Federal High Court Amendment Bill

In a separate letter, the president also transmitted a bill seeking to amend the Federal High Court Act to increase the number of judges from 70 to 90.

He further requested the Senate to screen and confirm the nomination of Oyewole Kayode as a Justice of the Supreme Court.

After the letters were read, Mr Akpabio referred the amendment bills and the nomination to the Senate Committee on Rules and Business for further legislative action.

The committee, whose responsibility lies solely in designing the Senate’s legislative agenda, is expected to list the bills on the Order Paper for Wednesday’s plenary for first reading.

If the Senate so decides, the bills may be scheduled immediately for second reading, during which the Senate Leader, Opeyemi Bamidele, will lead debate on their general principles and clauses, after which they will be referred to the Committee on Judiciary and Human Rights for public hearing.

 

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