The Nigerian Senate has expressed grave concerns over the deepening liquidity crisis in the country’s power sector, revealing that the Federal Government currently owes electricity generating and distribution companies a staggering N200 billion every month — with no payments made so far in 2025.
Senator Enyinnaya Abaribe, Chairman of the Senate Committee on Power, disclosed this during a retreat held in Ikot-Ekpene on Saturday, jointly organized with the Nigerian Electricity Regulatory Commission (NERC).
“There’s a liquidity crisis in the power sector,” Abaribe said. “The generating companies are owed so much, the distribution companies are also owed so much. The tariff shortfalls that we have mean that every month the government owes N200 billion in payments.”He warned that with zero payments made this year, the debt for 2025 has already hit N800 billion, adding to an existing backlog of over N3 trillion.
Abaribe further explained the ripple effect: “The generating companies owe the gas suppliers. The gas suppliers cannot just continue to supply gas indefinitely.”He called on both federal and state governments to urgently make a joint decision on whether to continue subsidizing fuel or prioritize subsidizing electricity which, he argued, powers economic productivity.
Minister of Power, Adebayo Adelabu, while providing an update on sector reforms, acknowledged the administration’s push to boost megawatt generation.
However, he lamented persistent challenges like funding gaps and rampant vandalism of energy infrastructure.“Only in this country are energy equipment being vandalised in such magnitude,” Adelabu stated.
Representing Governor Umo Eno of Akwa Ibom, Deputy Governor Akon Eyakenyi emphasized the link between electricity and economic growth, especially for Small and Medium Enterprises.“Only steady electricity supply can unlock the SME sector,” Eyakenyi said, expressing optimism that the retreat would offer tangible solutions to the crisis.
The retreat brought together key stakeholders aiming to tackle what the Senate described as “critical and emerging issues” in Nigeria’s troubled power sector.
