GenCos Say FG Yet to Pay ₦3.3tn Power Debt

By Babatunji Wusu| Power generation companies in Nigeria have stated that the Federal Government has not begun paying the ₦3.3 trillion electricity sector debt approved for settlement by President Bola Ahmed Tinubu, despite reports suggesting that implementation of the payment plan has commenced.

The companies, operating under the Association of Power Generation Companies (APGC), also challenged the government’s decision to reduce the outstanding debt from nearly ₦4 trillion to ₦3.3 trillion, maintaining that the entire amount remains unpaid.

Speaking during a webinar on Monday, APGC Chief Executive Officer, Joy Ogaji, said no generating company had received any funds under the approved settlement arrangement.

“You know that this acceptance of the government is like a moving target… from ₦3.3tn or ₦2.8tn, to date, we have not received a dime. Nothing has been received by the GenCos,” she said.

The electricity sector debt has remained a major concern for power generation companies, many of which have repeatedly warned that mounting unpaid obligations continue to affect their operations and financial stability.

President Bola Tinubu approved the debt settlement in April as part of the Presidential Power Sector Financial Reforms Programme, a broader initiative aimed at addressing longstanding financial challenges within Nigeria’s power sector.

Earlier, presidential spokesman Bayo Onanuga explained that ₦3.3 trillion had been accepted as a “full & final settlement” of verified debts accumulated between 2015 and 2025 after a reconciliation process.

However, the GenCos insist that the verified figure does not reflect the total outstanding obligations owed to them and argue that the full debt remains unresolved.

The disagreement highlights ongoing tensions over the financing of Nigeria’s power sector, as stakeholders continue to seek solutions to improve electricity generation and sustainability.