In a statement issued in Abuja on Monday and titled “APGC Position on Misleading Reports Regarding GenCos’ Debt Reconciliation,” the association’s Chief Executive Officer, Joy Ogaji, challenged those behind the claim to make public the basis of their computation.
According to Ogaji, the figure of N2.8 trillion does not reflect the outcome of any officially concluded reconciliation exercise between the GenCos and relevant government institutions. She insisted that any claim suggesting the amount represents a final, audited settlement is “completely inaccurate” and amounts to misinformation.
Presidency’s Position
Reports quoting senior officials within the Presidency and the Federal Ministry of Power had indicated that President Bola Tinubu approved N2.8 trillion as the Federal Government’s verified liability for accumulated electricity subsidies dating back to 2010.
According to the sources, the President rejected a N6 trillion claim submitted by operators, maintaining that he would not approve payment beyond the figure established by an audit. The report suggested that the N2.8 trillion had been reviewed, presented to the President, and formally approved as the government’s accepted liability.
However, APGC has countered that no such definitive reconciliation outcome exists and urged the unnamed officials cited in the report to publish their audit findings.
“Those Presidency sources should come out openly. Publish your audit report. Issue a formal statement explaining how you arrived at that figure,” Ogaji stated, arguing that there appears to be a poor understanding of how the debts accumulated and how they are structured within the market framework.
How the Debt Accumulated
Ogaji explained that the outstanding obligations stem strictly from bilateral commercial agreements executed within the Nigerian Electricity Supply Industry (NESI). According to her, these are not unilateral or arbitrary claims by generation companies but contractual liabilities arising from electricity generated, dispatched to the national grid, and consumed under regulated tariffs.
She noted that the debt calculation process is verifiable and follows established market procedures. Electricity generated by GenCos is metered and documented, with megawatts dispatched to the grid captured under regulated protocols. Invoices are then issued in line with market rules, while settlement reports are provided by the Nigerian Bulk Electricity Trading Plc (NBET).
“Any reconciliation or audit of these obligations must be conducted transparently and in accordance with the provisions of those bilateral agreements,” she stressed, adding that suggestions that the figures are arbitrary misrepresent the structured and documented nature of the claims.
Dispute Over Prior Reconciliation
The APGC CEO also disclosed that no further reconciliation meeting had been convened by NBET following a tripartite reconciliation exercise held in March 2025.
She recalled that in July 2025, after a tripartite reconciliation involving GenCos, NBET, the Ministry of Finance and the Office of the Special Adviser on Energy, President Tinubu approved N4 trillion in recognition of verified legacy obligations.
According to her, that approval followed due process and formal engagement, and GenCos subsequently engaged financial institutions, gas suppliers and investors based on the understanding that the reconciled amount had presidential backing.
Revising figures outside the established reconciliation framework, she warned, could undermine contractual sanctity and investor confidence in a sector already grappling with financial instability.
Structural Liquidity Crisis
Ogaji further attributed the persistent liquidity crisis in the power sector to longstanding structural challenges rather than inflated or arbitrary demands by generation companies. Among the key factors she listed were tariff shortfalls under regulated pricing, chronic market settlement deficits, foreign exchange exposure, and accumulated unpaid invoices.
Nigeria’s power sector has struggled with mounting debts since the 2013 privatisation of the industry. GenCos have repeatedly warned that delayed payments from NBET and distribution companies have constrained their ability to meet obligations to gas suppliers and service lenders, raising concerns about the sustainability of electricity generation.
Liquidity shortfalls within the Nigerian Electricity Supply Industry have deepened over the years, driven by non-cost-reflective tariffs, foreign exchange volatility, and persistent settlement gaps.
Against this backdrop, the APGC cautioned that altering previously reconciled figures without formal and transparent engagement risks eroding market confidence at a time when the sector urgently requires capital inflows and policy stability.
While reaffirming confidence in the President, the association maintained that any further discussions on legacy debts must be conducted transparently and strictly within the framework of existing bilateral agreements governing the electricity market.