The Association of Power Generation Companies in Nigeria has revealed that the outstanding unpaid invoices for electricity supplied to the national grid have now surged to approximately N6 trillion. This alarming figure highlights ongoing issues within the Nigerian power sector, primarily driven by significant revenue shortfalls and inadequate remittances throughout the electricity value chain. The financial instability resulting from this growing debt jeopardizes the ability of generation companies to maintain and expand infrastructure, purchase fuel, and perform necessary operational functions.

In light of recent allegations by the Nigeria Labour Congress accusing electricity firms of "institutionalized extortion," the Chief Executive Officer of the association, Joy Ogaji, has firmly defended the power generation companies, asserting that these claims misinterpret the fundamental liquidity crisis currently impacting the industry. This defense signifies the ongoing tension between labor unions and electricity providers, as the latter seeks to clarify that their financial predicaments stem from systemic failures in revenue collection rather than unjust practices.

As the situation develops, the implications of these unpaid bills may profoundly affect the reliability and sustainability of electricity supply in Nigeria. Without addressing the underlying issues of revenue generation and financial management, there are fears that the power supply crisis could worsen, affecting businesses and households across the country, and potentially leading to further economic challenges. The need for urgent reforms and enhanced operational efficiency within the sector has never been more critical to prevent a total collapse of the electricity system in Nigeria.