GenCos Reject Presidency’s ₦2.8 Trillion Power Debt Figure, Demand Transparency
GenCos Dispute Presidency’s Legacy Debt Claims, Urge Clear Reconciliation Process
The Association of Power Generation Companies (APGC) has publicly rebuffed media reports suggesting that ₦2.8 trillion represents a newly verified and final settlement of legacy debts owed by the Federal Government to power generation companies (GenCos). In a statement issued in Abuja, the association characterised the reported figure as inaccurate and misleading, and urged authorities to disclose the basis of any audit or reconciliation process supporting that claim.
Dispute Over Reported Debt Settlement
Recent news articles attributed to unnamed sources within the Presidency and Federal Ministry of Power stated that President Bola Ahmed Tinubu approved a payment of ₦2.8 trillion as the federal government’s verified liability for accumulated electricity subsidy obligations dating back to 2010. These reports were presented as the outcome of a detailed audit and negotiation involving key sector stakeholders.
In response, APGC’s Chief Executive Officer, Joy Ogaji, categorically rejected the portrayal of this figure as a concluded settlement. She described the reports as false, challenging “those Presidency sources” to publish audit documentation and formally explain how the figure was computed. According to Ogaji, the ₦2.8 trillion figure did not emerge from any officially concluded reconciliation process.
Reference to Earlier Approval
APGC also emphasised that in July 2025, following a tripartite reconciliation exercise involving GenCos, the Nigerian Bulk Electricity Trading Plc (NBET), the Federal Ministry of Finance and the Office of the Special Adviser on Energy, President Tinubu approved ₦4 trillion in recognition of verified legacy obligations to GenCos and gas suppliers. This commitment, the association noted, was made through due process and formal engagement, and underpins existing commercial planning by generation companies and financial partners.
The association warned that altering or revising figures outside the established reconciliation framework without transparent audit results could undermine market confidence and contractual certainty in the electricity sector.
Structural Issues in the Power Sector
APGC pointed out that the sector’s ongoing liquidity challenges stem from systemic factors such as tariff shortfalls arising from regulated pricing, persistent market settlement deficits, foreign exchange exposure and unpaid invoices. These structural issues have contributed to arrears, which can distort perceptions of the true liabilities owed to GenCos under existing bilateral agreements.
The association stressed that debt obligations should be defined by contractual agreements, metered generation data and documented energy dispatch records rather than arbitrary media statements.
Broader Context
Nigeria’s power sector has grappled with mounting debts since its privatisation in 2013. Past negotiations between the federal government and GenCos have produced varying debt estimates, with figures cited as high as ₦6 trillion and earlier reconciled commitments of ₦4 trillion being referenced in official engagements.
In late 2025, the federal government also commenced issuing bonds under a Presidential Power Sector Debt Reduction Programme, raising funds to begin addressing verified arrears owed to GenCos and gas suppliers. Series issuances of government-backed bonds are part of the strategic response to the sector’s liquidity crisis.
The current dispute between power generation companies and representations attributed to the Presidency over a ₦2.8 trillion debt figure highlights tension in how legacy obligations are being communicated and accounted for. With the APGC reiterating confidence in government commitments and calling for transparent audit disclosures, clarity on the true size and structure of power sector debt remains central to restoring investor confidence and functional stability in Nigeria’s electricity market.
