GenCos dispute N2.8trn debt settlement approved by presidency

The Association of Power Generation Companies (APGC) has dismissed reports claiming that N2.8 trillion represents a newly verified and final settlement of legacy debts owed to electricity generation companies, describing the assertion as inaccurate and misleading.

In a statement titled “APGC Position on Misleading Reports Regarding GenCos’ Debt Reconciliation,” issued Monday in Abuja, the association’s Chief Executive Officer, Joy Ogaji, said the N2.8 trillion figure did not emerge from any officially concluded reconciliation process and challenged those behind the claim to disclose how the amount was computed.

The reports had cited unnamed Presidency sources who claimed that Bola Ahmed Tinubu approved N2.8 trillion as the Federal Government’s verified liability for accumulated electricity subsidies dating back to 2010, a position APGC strongly refutes.

What they are saying

The APGC CEO said the association categorically rejects the reported N2.8 trillion figure, insisting it does not reflect any concluded reconciliation exercise. She described the report as false and urged transparency from those behind the claim.

• “We categorically reject recent media reports suggesting that N2.8 trillion represents a newly verified and final settlement of GenCos’ legacy debts. The report is completely inaccurate. It is fake news,” Ogaji said.
• “Those Presidency sources should come out openly. Publish your audit report. Issue a formal press release explaining how you arrived at that figure. There is a clear demonstration of poor understanding of the debt structure and how these obligations accumulated,” she stated.
• “The energy generated by GenCos is metered and documented. The megawatts generated and dispatched to the grid are captured under established market procedures. These form the basis of invoices rendered under bilateral agreements. Any suggestion that figures are arbitrary is incorrect,” she said.

Ogaji maintained that any reconciliation or audit of the obligations must be conducted transparently and strictly in line with the provisions of the bilateral agreements governing the electricity market.

The APGC CEO explained that the outstanding liabilities arose from bilateral commercial agreements executed within the Nigerian Electricity Supply Industry framework, stressing that they are contractual obligations rather than unilateral claims by generation companies. She noted that the total debt is determined through a verifiable market process.

• Metered megawatts generated by GenCos
• Energy dispatched to the national grid
• Invoices issued in line with market rules
• Settlement reports prepared by Nigerian Bulk Electricity Trading Plc

She further disclosed that as of December 2025, no additional reconciliation meeting had been convened by the Nigerian Bulk Electricity Trading Plc following the March 2025 tripartite reconciliation exercise.

More Insights

Ogaji recalled that in July 2025, after a tripartite reconciliation involving GenCos, Nigerian Bulk Electricity Trading Plc, the Ministry of Finance, and the Office of the Special Adviser on Energy, the President approved N4 trillion in recognition of verified legacy obligations. She said the approval followed due process and formal engagement.

• “It is on record that after a tripartite reconciliation involving GenCos, NBET, the Ministry of Finance, and the Office of the Special Adviser on Energy, His Excellency approved N4 trillion in recognition of verified legacy obligations. That commitment was made following due process and formal engagement,” she said.
• “Revising figures outside the established reconciliation framework undermines market confidence and contractual sanctity,” Ogaji warned.

She noted that GenCos participated in the reconciliation process in good faith and subsequently engaged financial institutions, gas suppliers, and investors based on the approved N4 trillion figure.

What you should know

In October 2025, Nairametrics reported that the Federal Government had concluded implementation frameworks for a N4 trillion government-backed bond aimed at settling verified arrears owed to power generation companies and gas suppliers.

Nairametrics also reported that the Federal Government’s plan to issue up to N4 trillion in government-backed bonds to settle legacy debts owed to Gencos and gas suppliers triggered concerns over its risky debt-for-debt strategy.

GenCos dispute N2.8trn debt settlement approved by presidency - Nairametrics