The Federal Government led by Bola Tinubu and power generation companies (GenCos) are currently at odds over the total debt owed within Nigeria’s electricity sector, as reconciliation efforts continue to produce differing figures.
Minister of Power, Adebayo Adelabu, stated that the government’s outstanding obligations to GenCos may be lower than widely reported. According to him, while some estimates place the debt at about ₦6 trillion, ongoing reviews could bring the figure down to around ₦4 trillion.
He explained that the figures are still under verification, noting that previous estimates have already been reduced after proper audits. For instance, a debt earlier put at ₦4 trillion as of late 2024 was later adjusted to approximately ₦2.8 trillion after accounting for factors such as interest and foreign exchange components.
Adelabu also revealed that a significant portion of the debt—estimated at over 60 percent—is tied to payments owed to gas suppliers, which play a crucial role in electricity generation.
However, power generation companies have pushed back against the government’s position, insisting that any debt figure must be agreed upon collectively by all stakeholders involved.
The Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, called for transparency in the reconciliation process. She stressed that the figures should only be finalized through joint discussions, noting that the last known reconciliation meeting took place in March 2025.
Ogaji questioned how the government arrived at its current estimates, stating that no new reconciliation has been conducted since the last meeting. She also raised concerns about relying on a single agency for debt calculations, emphasizing that accurate figures can only emerge through a comprehensive and inclusive review process.
The ongoing disagreement highlights deeper challenges in Nigeria’s power sector, where liquidity issues and unresolved financial obligations continue to impact operations and investor confidence.