The Federal Government and electricity generation companies (GenCos) are at odds over the actual size of debts in Nigeria’s power sector, with both sides presenting conflicting figures amid ongoing reconciliation efforts.
Minister of Power, Adebayo Adelabu, said the government’s liabilities to GenCos may be lower than widely reported. According to him, earlier estimates of about ₦4 trillion were reduced to ₦2.8 trillion after audit reviews.
“You asked how much we owe suppliers… the amount we owe GenCos is estimated and is still being reconciled,” Adelabu said, adding that when the process is completed, the figure will “probably be around ₦4 trillion total.”
He explained that a significant portion of the debt—“not less than 60 per cent”—is owed to gas suppliers, whose inputs are critical for electricity generation.
However, GenCos have rejected the government’s position, insisting that the figures lack transparency and were not jointly agreed upon.
Executive Secretary of the Association of Power Generation Companies, Dr. Joy Ogaji, questioned how the government arrived at its numbers, stressing that reconciliation must involve all stakeholders.
“We want the government to publish how they arrived at their figures and what components formed them,” she said, noting that the last joint reconciliation meeting was held in March 2025.
Dr. Ogaji added that GenCos have not participated in any recent reconciliation exercise, raising concerns about the credibility of the revised figures.
She maintained that the debts include unpaid invoices, capacity charges, foreign exchange differentials, and other operational costs tied to electricity generation.
Further highlighting the burden on operators, you will recall that Dr. Ogaji recently said on Hard Facts on Nigeria Info 99.3FM, that GenCos are owed over ₦6 trillion.
She warned that the mounting debt is affecting their ability to maintain plants and sustain operations.
The disagreement underscores ongoing liquidity challenges in Nigeria’s power sector, where unresolved debts, tariff gaps, and funding constraints continue to impact electricity supply nationwide.
