GenCos Seek Tinubu’s Clarification Of Power Debt Audit

BY NSE ANTHONY-UKO Abuja AND CHIKA IZUORA, Lagos

The electricity generation companies (GenCos) have called on President Bola Ahmed Tinubu to explain how the federal government arrived at the reported N3.3 trillion debt owed to operators in the country’s electricity sector.

The federal government had on Sunday said it had approved N3.3 trillion as final settlement for GenCos legacy debts to address the liquidity challenges facing the power sector.

The government also said it secured settlement agreements from 15 power generation firms totaling N2.3 trillion under the Presidential Power Sector Financial Reforms Programme, marking a key step in resolving longstanding legacy debts crippling Nigeria’s electricity sector.

But speaking during an interview with The Elite Journal,  chief executive officer of the Association of Power Generation Companies, Dr Joy Ogaji, said the amount being referenced does not align with reconciled figures agreed with relevant authorities.

“We need to understand how this N3.3 trillion was computed,” she said, noting that the last reconciliation exercise between GenCos and government agencies was concluded in March 2025.

Ogaji further stated that while the companies acknowledge outstanding obligations within the sector, any figure presented must reflect mutually agreed records to ensure transparency and credibility.

Speaking with LEADERSHIP,  Ogaji said GenCos cannot independently confirm details of federal government’s current legacy debt payment.

Declaring that she only read about it in the news and had no details of the payment,  Ogaji, however, described the move as a welcome development that would go a long way to improve liquidity injection in the sector.

“For now, that is much I can say because everything is still as the media has reported it but we are waiting to get a clearer picture and more details about it,” Ogaji added.

On his part, a power sector expert, Ade Olaniyi, emphasised the need for clarity in financial reporting within the electricity value chain.

“There must be consistency in the figures being communicated to stakeholders. Without a clear breakdown, it becomes difficult to align on any repayment framework or long term solution,” he said.

The GenCos, according to the Elite Journal report, are requesting a detailed explanation of the debt, including legacy liabilities, subsidy shortfalls, and other contributing components.

The development comes as the federal government continues efforts to address liquidity challenges in the power sector, including plans to resolve outstanding debts owed to market participants.

President Bola Tinubu approved the payment plan, presidential spokesman Bayo Onanuga announced.

The move follows an exhaustive, independent review of debts accumulated from February 2015 to March 2025, culminating in a final reconciled figure of N3.3 trillion.