Gencos Lose N110.56bn to Stranded Capacity in H1 2026

In the first half of 2026, Generation Companies (Gencos) in Nigeria incurred an estimated loss of N110.56 billion in capacity payments, with an average of 3,124.50MW of generation capacity stranded monthly. The Association of Power Generation Companies (APGC) revealed that Gencos had an average available generation capacity of 7,260MW, but only 4,581.5MW was declared available for generation, while actual average generation was 4,196.83MW.

Stranded generation capacity refers to the electricity that could be produced but is not utilized due to insufficient demand, transmission constraints, or distribution limitations. The data indicated that the stranded capacity represented about 43% of the average available generation capacity.

In March, the situation peaked with 3,650MW of stranded capacity and a loss of N22.13 billion, accounting for 20% of the total loss for the period. Gencos have consistently reported substantial fixed and operational costs, leading to significant revenue losses despite their generation capabilities.