Nigeria’s GenCos Seek Clarity on N3.3tn Debt Settlement Plan

Nigeria’s Power Generation Companies (GenCos) has sought a clarification from President Bola Tinubu over how his administration arrived at the reported N3.3 trillion debt said to be owed to operators in the country’s electricity sector. 

This is as speculations surge in different quarters of the sector over discrepancies between the figure and reconciled industry records.

Reservations were made over the computation of the debt figure, noting that it does not correspond with amounts previously agreed upon during reconciliation exercises involving market participants and government agencies.

The request follows as the federal government of Nigeria begins the implementation of a ₦3.3 trillion payment plan designed to clear longstanding liabilities in the power sector and stabilise electricity supply nationwide.

Speaking on the development, the Presidency explained that the settlement followed a final review conducted under the Presidential Power Sector Financial Reforms Programme, covering legacy debts accumulated between February 2015 and March 2025. 

Following verification, N3.3 trillion was adopted as a full and final settlement figure.

Implementation has commenced, with 15 power plants signing settlement agreements valued at N2.3 trillion. Government sources indicated that N501 billion has been raised to support the disbursement process, with N223 billion already released while additional payments are ongoing.

Despite the development, generation companies say the amount being referenced does not align with figures previously reconciled with relevant authorities during sector-wide reviews concluded in March 2025.

Joy Ogaji, the Chief Executive Officer (CEO) of the Association of Power Generation Companies, stated that the figure currently being referenced differs from reconciled positions reached with relevant authorities following the last settlement review concluded in March 2025.

“We need to understand how this N3.3 trillion was computed,” she said.

She acknowledged the existence of outstanding financial obligations within the power sector but stressed that any publicly stated figure must reflect mutually verified records to preserve transparency and credibility within the electricity market.