GENCOS LAMENT NON-PAYMENT OF N3.3TN POWER SECTOR DEBT BY FEDERAL GOVERNMENT
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Power Generation Companies (GenCos) have alleged that the Federal Government is yet to commence payment of the ₦3.3 trillion electricity sector debt approved by President Bola Tinubu in April, despite earlier assurances that settlement had begun.
The GenCos, under the Association of Power Generation Companies (APGC), also rejected the government’s downward review of the outstanding debt from about ₦4 trillion to ₦3.3 trillion, insisting that the full amount remains unpaid.
Speaking during a webinar on Monday, APGC Chief Executive Officer, Joy Ogaji, said no generation company had received payment under the proposed settlement arrangement.
“You know that this acceptance of the government is like a moving target. Earlier, the government said the debt was ₦2.3 trillion. About a month or two after, it increased to ₦2.8 trillion. The last one was ₦3.3 trillion… To date, we have not received a dime. Nothing has been received by the GenCos,” she said.
The Presidency had earlier announced in April that President Tinubu approved a phased settlement plan under the Presidential Power Sector Financial Reforms Programme, with ₦3.3 trillion agreed as full and final settlement of verified legacy debts accrued between 2015 and 2025.
However, Ogaji maintained that the companies had not accepted the revised figure, arguing that reconciliations with gas suppliers placed total liabilities above ₦4 trillion.
According to her, gas suppliers have also refused to accept any haircut on debts owed to them, complicating the settlement process.
“We have not accepted ₦3.3 trillion… when we reconciled our debt to gas suppliers, we owed them over ₦4 trillion,” she added.
Ogaji further disclosed that only five generation companies have so far agreed to the Federal Government’s bond arrangement, while others have declined the terms attached to the programme.
She listed Geregu Power, Ibom Power, First Independent Power Limited (FIPL), Niger Delta Power Holding Company (NDPHC), and Mabon Energy as the firms currently receiving payments under the bond structure.
The APGC boss also said disbursement of the ₦501 billion bond earlier raised by the government for the sector is still ongoing and has not been completed.
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