Nigerian Gencos Lose N2.28 Trillion Due to Massive Stranded Power, Revealing Sector Inefficiencies

Nigerian Gencos have incurred significant losses of N2.28 trillion in capacity payments between 2015-2025 due to a large portion of installed power capacity remaining stranded. The inefficiencies across the power value chain in Nigeria have led to Gencos being unable to monetize the power system fully.

Data from the Abuja Power Generation Company (APGC) shows that a substantial percentage of the country's available generation capacity is not utilized, reaching 54.38% at its peak. Despite an increase in installed generation capacity over the years, challenges such as transmission constraints, grid instability, and weak demand absorption have hindered Gencos from operating at full potential, resulting in significant financial losses.