GenCos Rejects ₦2.8 Trillion Debt Approved by Presidency

Electricity generation companies (GenCos) in Nigeria have publicly denied claims that the Federal Government has verified and approved ₦2.8 trillion as the final settlement of legacy debts owed to them. This dispute highlights ongoing issues in the nation’s struggling power sector.

The controversy began after media reports last week suggested that President Bola Ahmed Tinubu had accepted ₦2.8 trillion as the total amount the federal government owes the generation companies.

The reports stated that this amount came from an audit that significantly lowered the company’s original claim of around ₦6 trillion.

APGC Refutes Presidency Narrative

In a strong statement released in Abuja on Monday, the Association of Power Generation Companies (APGC) rejected those reports as misleading. According to reports, Joy Ogaji, Chief Executive Officer of APGC, described the claim that ₦2.8 trillion is the official and verified settlement figure as “completely inaccurate” and “fake news.”

“We categorically reject recent media reports suggesting that ₦2.8 trillion represents a newly verified and final settlement of GenCos’ legacy debts. The report is entirely inaccurate,” Ogaji said in a document titled “APGC Position on Misleading Reports Regarding GenCos’ Debt Reconciliation.”

She urged unnamed sources from the Presidency to publish the audit findings that led to the figure and clarify how it was calculated.

“Those Presidency sources should come out openly. I dare them. Publish your audit report. Why hide to throw stones?” she added, pointing out what she sees as a lack of transparency in the process.

Background to the Dispute

The broader dispute involves long-standing unpaid invoices and subsidy obligations in Nigeria’s electricity market. The sector was privatized in 2013. However, it continues to face ongoing liquidity issues, tariffs that do not reflect costs, and currency instability.

In the system, GenCos generate power that is sold to the Nigerian Bulk Electricity Trading Plc (NBET), which then sells it to distribution companies. Delays and payment shortfalls throughout this chain have led to accumulating liabilities.

Last year, Ogaji mentioned that GenCos had estimated about ₦6.2 trillion in outstanding invoices. She mentioned only about 35 percent settled since 2015. She stated that this situation has left many operators technically insolvent and unable to invest properly in capacity and maintenance.

In July 2025, Ogaji recalled in her statement that a reconciliation involving GenCos, NBET, the Ministry of Finance, and the Office of the Special Adviser on Energy resulted in an agreement on ₦4 trillion in recognized legacy obligations, a figure that has been referenced in industry discussions.

Government Position and Audit Claims

Government sources cited in earlier reports indicated that the ₦2.8 trillion figure came from a tripartite audit involving the Ministry of Finance, NBET, and GenCos. This process was insisted upon by President Tinubu before any public funds could be allocated.

The sources claimed the President dismissed the companies’ original ₦6 trillion claim as inflated and insisted on payment only for liabilities verified through official reconciliation.

Officials also mentioned that the Federal Government had already raised ₦501 billion through a bond under the Presidential Power Sector Debt Reduction Programme to show good faith while negotiations continued. Additional phased payments are expected later this year.

Tension, Transparency and Sector Confidence

Analysts and industry stakeholders warn that if the GenCos feel misrepresented, the dispute could affect investor confidence in Nigeria’s electricity market. This is especially when structural reforms and private investment are urgently needed.

Ogaji stressed that changing figures “outside the established reconciliation framework undermines market confidence and contractual integrity.”

Despite rejecting the ₦2.8 trillion claim, APGC expressed trust in President Tinubu and reiterated its willingness to continue constructive engagement. This is as long as future discussions are transparent and firmly based on the commercial agreements that govern the sector.