The Affiliation of Energy Technology Corporations (APGC) has issued a stern warning over the broader implications of the choice for Nigeria’s already fragile energy sector, within the wake of the Enugu Electrical energy Regulatory Fee’s (EERC) announcement lowering electrical energy tariffs for Band A clients from ₦209/kWh to ₦160/kWh, efficient August 1, 2025.
Pleasure Ogaji, chief government officer of the APGC, described the choice as a deeply troubling precedent that might undermine the long-term viability of the Nigerian Electrical energy Provide Business (NESI), with critical dangers of systemic failure if important monetary and structural points stay unaddressed.
A Subsidy With out a Coverage?
Opposite to in style stories that the federal authorities (FGN) is subsidising the electrical energy sector, Ogaji asserts that what’s presently unfolding is just not subsidy help however an unsustainable accumulation of debt. “There isn’t a FGN coverage on electrical energy subsidies. What we’re witnessing is unchecked debt accumulation,” she mentioned.
She famous that the month-to-month bill for electrical energy technology averages round ₦250 billion, however solely ₦900 billion was allotted for all the 2025 fiscal yr—an quantity that, as of July 21, 2025, stays unfunded. Based mostly on EERC’s tariff order, the technology price per kilowatt-hour is pegged at ₦112, however solely ₦45 is mirrored within the tariff, leaving a 60% shortfall presumably to be coated by FGN—regardless of no clear financing plan or money backing.
“This units a harmful precedent, and if this turns into the mannequin adopted by different states, we’re heading right into a nationwide contagion that have to be addressed instantly on the Presidential stage,” she warned.
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Legacy Money owed, Structural Fragility
The GenCos, Ogaji defined, are presently owed about ₦4 trillion in complete, together with ₦2 trillion in unpaid invoices for 2024 and ₦1.9 trillion in legacy money owed from 2015 to 2023. A further ₦1.2 trillion is owed for the primary half of 2025 alone. These figures replicate an alarming liquidity disaster that threatens the flexibility of technology firms to stay operational.
The trade, she mentioned, is haunted by damaged guarantees relationship again to the privatisation of the facility sector over a decade in the past.
