Generation Companies (Gencos) yesterday said that the debts owed them hit N1.2 trillion in the first half of 2025 alone, with total arrears, including legacy debts of N2 trillion and another N2 trillion in accumulated financial obligation by the federal government in 2024, now reaching almost N5.2 trillion. The Gencos, in a statement by their spokesperson, Dr Joy Ogaji, was reacting to news reports that the federal government may shoulder the new subsidies granted by the Enugu Electricity Regulatory Commission (EERC) to its customers after it slashed tariff from N209 to N160 per kilowatt hour. The Gencos expressed concern that this tariff issued by EERC  has set a precedent for all other states, explaining that from their tariff order, only N45 naira is captured for generation cost out of N112, portending a bigger issue in the decentralisation of power or electricity to the subnational governments.

THISDAY