Power-generating companies (GenCos) in Nigeria have reportedly lost N2.31 trillion over the past twelve years due to electricity that could have been generated but remained unused because of grid and operational constraints, The PUNCH reports.
The data, released by the Association of Power Generation Companies (APGC) and analysed by our correspondent, covers losses recorded between 2013 and September 2025. It represents the cumulative value of power available for generation that could not be evacuated by the national grid or delivered to consumers.
APGC Managing Director/CEO Joy Ogaji presented the figures at the association’s 20th anniversary, highlighting the growing financial strain on Nigeria’s electricity market as power producers bear massive losses from stranded capacity.
Stranded Power Explained
Annual capacity payment loss refers to the monetary value of electricity generation capacity that is available but unused due to transmission and operational limitations. For instance, while GenCos declare 6,000–7,000MW of capacity, the national grid often evacuates only about 4,500MW, resulting in billions of naira in lost payments.
Data shows a persistent structural inefficiency: over 2,000MW of power remains stranded annually, despite substantial investments in generation since the sector’s privatisation in 2013. Between January and September 2025, an average of 2,221.99MW of capacity was stranded monthly, costing N119 billion in capacity payments during that period.
Historical Losses
2015: 3,010.24MW stranded, N214.93bn loss
2016: 3,827.98MW stranded, N273.32bn loss
2017: 3,311MW stranded, N236.47bn loss
2018: 3,698MW stranded, N264.08bn loss
019–2020: 3,597MW–3,742MW stranded, losses of N256.85bn and N266.10bn respectively
2021–2024: losses gradually reduced to 1,816–2,248MW stranded, N132bn–N160bn annually
Between January and September 2025, Nigeria’s available generation capacity averaged 6,806.63MW, but only 4,637.72MW was utilised, leaving roughly 32% of potential power stranded. Monthly losses peaked in August at N20.17bn.
Structural and Financial Challenges
Ogaji emphasised that inefficiencies, unpaid obligations, and policy inconsistencies continue to weigh heavily on the market. GenCos rely on capacity payments to maintain plants and service loans, yet irregular payments undermine their ability to operate at full potential.
The sector’s liquidity crisis discourages investment, reduces reliability of existing generation assets, and keeps millions of Nigerians in the dark despite over 10,000MW of idle generation capacity nationwide, according to Power Minister Adebayo Adelabu. He stressed that the country’s immediate problem is not generation but transmission and distribution.
Economic Impact
Persistent stranded power limits industrial output and economic growth. The APGC noted that a 1% increase in power supply could boost Nigeria’s GDP by up to 3.94%. Delivering even half of the 2,000–3,000MW of stranded electricity could have increased GDP by 10–12% over the last decade.
Recommendations
To curb these losses, the APGC urged the Federal Government to:
Honour all contractual obligations under power purchase agreements
Strengthen transmission and distribution infrastructure
Ensure full and timely payment of GenCos’ invoices
Promote investment in grid expansion and gas supply
Implement bilateral contracts, off-grid alternatives, and targeted grid upgrades to optimise power evacuation
Ogaji concluded: “Electricity drives industrialisation and employment. Nigeria cannot achieve economic expansion while power plants sit idle.”
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