By Jeremiah Gold
Power Generation Companies (GenCos) have asked President Bola Ahmed Tinubu to clarify how the Federal Government arrived at the reported ₦3.3 trillion debt said to be owed to operators in Nigeria’s electricity sector, raising concerns over discrepancies between the figure and reconciled industry records.
Reservations were made over the computation of the debt figure, noting that it does not correspond with amounts previously agreed upon during reconciliation exercises involving market participants and government agencies.
The request comes as the Federal Government begins implementation of a ₦3.3 trillion payment plan designed to clear longstanding liabilities in the power sector and stabilise electricity supply nationwide.
In announcing the programme, the Presidency said the settlement followed a final review conducted under the Presidential Power Sector Financial Reforms Programme, covering legacy debts accumulated between February 2015 and March 2025. Following verification, N3.3 trillion was adopted as a full and final settlement figure.
Implementation has commenced, with 15 power plants signing settlement agreements valued at N2.3 trillion. Government sources indicated that N501 billion has been raised to support the disbursement process, with N223 billion already released while additional payments are ongoing.
Despite the development, generation companies say the amount being referenced does not align with figures previously reconciled with relevant authorities during sector-wide reviews concluded in March 2025.
Chief Executive Officer of the Association of Power Generation Companies, Dr. Joy Ogaji, said the figure currently being referenced differs from reconciled positions reached with relevant authorities following the last settlement review concluded in March 2025.
“We need to understand how this N3.3 trillion was computed,” she said.
She acknowledged the existence of outstanding financial obligations within the power sector but stressed that any publicly stated figure must reflect mutually verified records to preserve transparency and credibility within the electricity market.
A power sector expert, Dr. Ade Olaniyi, also called for improved clarity and consistency in financial disclosures across the electricity value chain, warning that conflicting figures could complicate efforts to resolve longstanding liquidity challenges.
“There must be consistency in the figures being communicated to stakeholders,” he said. “Without a clear breakdown, it becomes difficult to align on any repayment framework or long term solution.”
The generation companies are seeking a detailed explanation of the debt profile, including legacy liabilities, subsidy-related shortfalls and other components contributing to the accumulated obligations.
The request comes amid ongoing government efforts to address liquidity constraints in the power sector and settle outstanding payments owed to market participants as part of broader reform measures.
