The 26 power generation companies in Nigeria’s electricity market have linked the slow pace of investments in the expansion of their generation capacities to the huge debt figures in their respective financial books, ThisDay reports.

The Gencos said the development was scaring away potential investors, and also keeping others who had committed to invest in them, from going ahead with the conclusion of negotiations on the expansion plans. According to the Executive Secretary of the Association of Power Generation Companies (APGC), Dr. Joy Ogaji, this has been aggravated by the poor financial positions of the Gencos as contributed by the huge debts owed them by the market for electricity supplied.

Ogaji stated this at a press briefing in Abuja where she noted that the huge debts in the books of the Gencos have become major setbacks to their capacity expansion plans, adding that while their lenders frequently write to them on this, investors have also stayed away from advancing negotiations on financing future capacity expansions.