GenCos Urge FG to Extend N3.6tn Power Subsidy Beyond 2028

Nigeria’s power generation companies has urged the Federal Government to extend its proposed ₦3.6 trillion electricity subsidy plan beyond 2028, warning that the sector’s liquidity crisis cannot be resolved within three years.

The call came from Joy Ogaji, CEO of the Association of Power Generation Companies (APGC), in response to government documents outlining subsidy provisions of ₦1.2 trillion annually from 2026 to 2028.

Ogaji welcomed the initiative as proactive but questioned its sustainability.

“Is it not possible to extend the period beyond 2028? Are we expecting a miracle after 2028? Do we have a magic wand to wave off the crux of the liquidity conundrum?” she asked.

She cautioned that while subsidies may provide temporary relief, they do not address structural weaknesses such as poor financial discipline and weak accountability.

“This will only fund a leaking basket without establishing the discipline and accountability required to stop the contagion,” she said.

Ogaji stressed the need for retroactive action to clear outstanding debts owed to GenCos, noting that legacy arrears continue to constrain operations.

As of December 2025, government debt to GenCos stood at ₦6.4 trillion, despite a ₦501 billion bond issued to settle part of the ₦4 trillion owed.

“The power sector wound is beyond plasters and bandages. There is a cure—a renewed focus on the sector with strong political will,” Ogaji said, urging comprehensive reforms rather than short-term fixes.

Despite concerns, she expressed confidence in the government’s ability to resolve the crisis, pledging GenCos’ readiness to collaborate with stakeholders.

“We are confident that the Federal Government has all it takes to fix the sector, and we are ready and willing to collaboratively work to achieve sustained success,” she said.