Power Generation Companies (Gencos) have raised serious concerns over the Federal Government’s rising debt, revealing that outstanding payments surged by ₦1.2 trillion in the first half of 2025 alone. Total liabilities now stand at about ₦5.2 trillion, comprising ₦1.9 trillion in legacy debts from 2015 to 2024, and another ₦2 trillion accrued in 2024. The Association of Power Generation Companies (APGC), via its Executive Secretary, Dr. Joy Ogaji, issued a statement responding to reports that the Federal Government may take on electricity subsidy costs following a recent tariff slash by the Enugu Electricity Regulatory Commission (EERC) from ₦209 to ₦160 per kilowatt-hour. The Gencos warned that the Enugu decision could set a dangerous precedent for other states, highlighting that only ₦45 out of the ₦112 allocated in the current tariff framework is earmarked for power generation. They warned this could derail efforts to decentralize electricity supply to states. Dr. Ogaji noted there is no formal federal policy to support such subsidies, calling the current situation “unchecked debt accumulation.” She revealed that while Gencos invoice around ₦250 billion monthly, the 2025 federal budget allocates only ₦900 billion for the entire year—and even that, she added, is not fully funded. “This poses a serious systemic risk that must be tackled at the presidential level,” Ogaji stressed. “The budget is woefully inadequate to clear current arrears or absorb future shortfalls.” Despite consistently delivering on generation targets, Gencos say they have never received full payments, nor guaranteed gas supply, timely remittances, or protection from grid inefficiencies. They also cited the burden of foreign exchange volatility, with over 90% of costs dollar-denominated, and warned that unstable grid operations continue to inflate maintenance costs.