FG and GenCos clash over unresolved electricity debts
The Federal Government and power generation companies are at odds over the actual amount of debt owed in Nigeria’s electricity market. Adebayo Adelabu, Minister of Power, claims the government’s liabilities to GenCos may be lower than widely reported, citing ongoing reconciliation efforts. However, the Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, insists that a comprehensive reconciliation involving all parties is necessary. The disagreement highlights persistent financial and operational challenges in the sector.
TLDR
- Adebayo Adelabu says government debt to GenCos could settle at about N4tn, not the N6.3tn figure often cited.
- Joy Ogaji argues that the last reconciliation meeting was in March 2025 and no further joint verification has occurred since then.
- GenCos claim outstanding liabilities include unpaid invoices since 2015, capacity payments, foreign exchange differentials, and other costs.
- The government previously approved N2.8tn as the verified portion of legacy debts, based on an audit of subsidy obligations accumulated since 2010.
- Both sides call for greater transparency and a more inclusive reconciliation process to resolve the dispute and stabilise the power sector.
