Power Generation Companies (GENCOs) have revealed that the Federal Government has yet to commence payment of the ₦3.3 trillion power sector debt approved by President Bola Tinubu, despite official assurances that the settlement process had begun.
Speaking during a webinar organized by the Association of Power Generation Companies (APGC), the association’s Chief Executive Officer, Joy Ogaji, stated that no payments have been received by most generation companies under the debt settlement arrangement.
According to Ogaji, the government’s debt figures have continued to change over time, moving from ₦2.3 trillion to ₦2.8 trillion and later ₦3.3 trillion. However, she maintained that the actual debt owed to power producers exceeds ₦4 trillion and remains unresolved.
The APGC also rejected the Federal Government’s ₦3.3 trillion debt valuation, arguing that it does not accurately reflect outstanding obligations, particularly debts owed to gas suppliers who have reportedly refused any reduction in payments due to them.
While the Federal Government previously announced that President Tinubu had approved a debt settlement plan and raised a ₦501 billion bond to support payments, GENCOs insist that the majority of power producers have not benefited from the arrangement.
Ogaji disclosed that only five generation companies agreed to the terms attached to the government’s bond programme and have been receiving payments. These include Geregu Power, Ibom Power, First Independent Power Limited, Niger Delta Power Holding Company, and Mabon Energy.
She warned that the sector’s debt burden continues to grow, claiming that total liabilities have now risen beyond ₦7 trillion.
The dispute highlights ongoing financial challenges within Nigeria’s power sector, with stakeholders expressing concerns that unresolved debts could further impact electricity generation, gas supply, and overall sector stability.
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