Power generation companies in Nigeria have 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 was made by the Association of Power Generation Companies following government plans, outlined in the 2026–2028 Medium Term Expenditure Framework, to fund power subsidies through annual ₦1.2 trillion deductions from the Federation Account.
While welcoming the move as a step toward fiscal transparency and shared responsibility across federal, state, and local governments, GenCos cautioned that the plan risks falling short without full appropriation, timely payments, and strong political commitment. They argued that ending the framework in 2028 assumes an unrealistic turnaround in sector finances.
Industry leaders stressed that subsidies alone will not fix deep structural problems, including weak accountability and mounting legacy debts. With government obligations to GenCos reportedly exceeding ₦6.4 trillion, stakeholders warned that without comprehensive reforms, liquidity pressures will persist despite short term relief.
