Electricity generation companies have warned that Nigeria’s power plants are at risk of collapse as mounting unpaid debts continue to cripple operations, with gas suppliers increasingly cutting off fuel supplies to indebted generation companies.

The Association of Power Generation Companies said the worsening liquidity crisis in the Nigerian Electricity Supply Industry has left several generation companies struggling to remain operational, warning that electricity supply could deteriorate further if the Federal Government fails to implement sustainable reforms. The government recently concluded an investors’ forum ahead of a proposed ₦729 billion bond issuance to settle part of the over ₦4 trillion owed to generation companies.

The association’s Chief Executive Officer, Joy Ogaji, said the bond programme alone would not resolve the crisis, as fresh liabilities continue to accumulate monthly. She warned that debts have risen above ₦3 trillion, forcing some power plants to shut down because they can no longer pay for gas supplies.