N6tn or N2.8tn: Fresh Confusion as Tinubu, GenCos Disagree on Electricity Debt Figure
- APGC has rejected claims that N2.8 trillion is a newly verified and final settlement of legacy debts owed to electricity generation companies
- The group’s CEO, Joy Ogaji, insisted that the debts were calculated through documented agreements within the NESI
- She stated that the association maintains confidence in President Bola Tinubu and expects transparent discussions going forward
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Association of Power Generation Companies (APGC) has rejected claims that N2.8 trillion is the final and newly verified payment for old debts owed to electricity generation companies.
In a statement released on Monday in Abuja, the Chief Executive Officer of the association, Joy Ogaji, described the report as false and misleading.
Source: UGC
According to The Sun, Ogaji said the amount did not come from any officially completed reconciliation process and asked those who made the claim to explain how they arrived at the figure.
Ogaji said:
“We completely reject the reports suggesting that N2.8 trillion is a newly verified and final settlement of GenCos’ legacy debts. The report is inaccurate and should be treated as fake news.”
Earlier, Legit.ng reported that President Bola Tinubu had approved N2.8 trillion as the Federal Government’s verified debt to power generation companies for electricity subsidies dating back to 2010.
According to the report, the President declined a N6 trillion claim from operators and insisted on paying only what had been audited.
How the debt was calculated
Ogaji explained that the debts came from formal business agreements within the Nigerian Electricity Supply Industry. She said the money owed is not based on random estimates but on clear and documented processes.
According to her, the electricity generated by GenCos is properly metered, and the megawatts sent to the national grid are recorded under established market rules.
Invoices are then issued based on these records, and settlement reports are prepared by Nigerian Bulk Electricity Trading Plc (NBET).
She stressed that any reconciliation or audit must follow the terms of the contracts guiding the electricity market. Ogaji added that as of December 2025, no new reconciliation meeting had been held after the tripartite meeting in March 2025.
She also recalled that in July 2025, after a joint reconciliation involving GenCos, NBET, the Ministry of Finance, and the Office of the Special Adviser on Energy, President Tinubu approved N4 trillion as verified legacy debt. She said this approval followed due process and formal discussions.
Concerns over investor confidence and sector challenges
Ogaji noted that generation companies took part in the reconciliation in good faith. Based on the N4 trillion approval, they engaged banks, gas suppliers, and investors. She warned that changing agreed figures outside the official process could damage trust in the power market and weaken existing contracts.
Despite the disagreement, Ogaji said APGC still has confidence in President Tinubu and expects that any further talks will be open and guided by existing agreements.
She also said the ongoing financial crisis in Nigeria’s power sector is caused by deeper structural problems, not by unfair demands from generation companies, Punch reported.
Since the 2013 privatisation of the industry, GenCos have struggled with delayed payments from NBET and electricity distribution companies. This has made it difficult for them to pay gas suppliers and repay loans.
Source: UGC
Other challenges affecting the sector include tariffs that do not fully reflect costs, foreign exchange instability, and persistent payment shortfalls.
Ogaji warned that changing previously reconciled figures without proper engagement could hurt investor confidence at a time when the power sector urgently needs fresh funding and stable policies.
FG raises N501bn bonds to clear electricity debt
Meanwhile, Legit.ng earlier reported that the federal government raised N501 billion through bonds to address historic debts in the electricity sector.
The bond issuance aims to restore confidence and unlock investments in the troubled power market
The settlement programme could improve electricity service delivery for over 12 million customers.
Source: Legit.ng
