The Association of Power Generation Companies (APGC) has categorically dismissed claims that President Bola Ahmed Tinubu has approved N2.8 trillion as a final settlement for longstanding debts owed to electricity generation companies (GenCos).
Labeling the figure as “fake news” and a product of misinformation, APGC’s Chief Executive Officer, Joy Ogaji, called for full disclosure of the audit process behind the amount, warning that such unilateral revisions could erode investor confidence in Nigeria’s beleaguered power sector.
The controversy stems from media reports citing unnamed sources within the presidency, which asserted that Tinubu had greenlit N2.8 trillion to cover accumulated electricity subsidies dating back to 2010.
These sources claimed that the approval followed a government audit that reduced GenCos’ initial claims—reportedly as high as N6 trillion—to the verified figure. However, APGC insists this does not align with any formal reconciliation and contradicts a previous presidential approval of N4 trillion in July 2025, following a tripartite exercise involving GenCos, the Nigerian Bulk Electricity Trading Plc (NBET), the Ministry of Finance, and the Office of the Special Adviser on Energy.
In a strongly worded statement titled “APGC Position on Misleading Reports Regarding GenCos’ Debt Reconciliation,” issued on Monday in Abuja, Ogaji challenged the anonymous sources to “come out openly” and publish their audit report. ” We categorically reject recent media reports suggesting that N2.8 trillion represents a newly verified and final settlement of GenCos’ legacy debts.
The report is completely inaccurate. It is fake news,” Ogaji declared. She emphasized that the figure did not emerge from any officially concluded process and urged those behind the claim to explain its computation transparently.
Ogaji elaborated on the debt structure, underscoring that liabilities to GenCos are not arbitrary but rooted in verifiable contractual obligations under the Nigerian Electricity Supply Industry framework. “The energy generated by GenCos is metered and documented.
The megawatts generated and dispatched to the grid are captured under established market procedures,” she explained. These form the basis of invoices issued in line with bilateral agreements, with settlement reports prepared by NBET. Any reconciliation, she argued, must adhere strictly to these agreements to maintain contractual sanctity.
The APGC’s stance highlights ongoing tensions in Nigeria’s power sector, where chronic underpayment has left GenCos grappling with massive debts. Recent estimates from the association indicate that the total outstanding obligations exceed N6.2 trillion, encompassing both legacy debts from pre-privatization eras and more recent unpaid invoices.
GenCos report receiving only about 35 percent of their billed amounts, exacerbating operational challenges such as gas supply shortages, maintenance costs, and foreign exchange fluctuations. “We are only requesting our receivables, which have accumulated over the years, as verified from Multi-Year Tariff Order (MYTO) and NBET documents for power generated and consumed,” Ogaji clarified in prior communications.
The dispute has drawn in other stakeholders, including the Nigeria Labour Congress (NLC), which has clashed with GenCos over the government’s handling of the debts. NLC President Joe Ajaero recently criticized proposals to allocate N3 trillion from the Federation Account toward settling what he described as a “N6.5 trillion heist,” arguing that Nigerians should not bear the cost of persistent blackouts.
Ogaji, in response, suggested such criticisms stem from a misunderstanding of the sector’s complexities, reiterating that the debts are legitimate contractual dues.
On the government’s side, highly placed officials have defended the N2.8 trillion figure as the outcome of a rigorous audit, with Tinubu reportedly insisting he would “not pay a naira beyond the audited figure.” Payments are expected to be made in phases, with half potentially settled by mid-2026, according to sources.
This move comes amid broader reforms in the power sector, including tariff adjustments and efforts to attract investment, but critics argue it risks further alienating operators already strained by liquidity issues.
Ogaji noted that no additional reconciliation meetings have been held by NBET since the March 2025 tripartite exercise, which led to the N4 trillion approval. GenCos, she said, participated in good faith and have since engaged financial institutions, gas suppliers, and investors based on that commitment. “Revising figures outside the established reconciliation framework undermines market confidence and contractual sanctity,” she warned, adding that the latest reports appear driven by “mischief makers.”
As Nigeria continues to face frequent grid collapses and power shortages—exacerbated by unpaid debts totaling trillions—the impasse underscores the urgent need for transparent debt resolution. Industry analysts warn that without swift action, GenCos’ capacity to sustain operations could falter, potentially deepening the nation’s energy crisis. The presidency has yet to issue an official response to APGC’s statement, but calls for a formal press release detailing the audit process are mounting.
This development follows years of accumulated subsidies and inefficiencies in the post-privatization electricity market, where GenCos have repeatedly sounded alarms over non-payment. With the sector’s debts ballooning, stakeholders are watching closely to see if this dispute prompts renewed dialogue or further entrenchment.
WHAT YOU SHOULD KNOW
The Association of Power Generation Companies (APGC) has firmly rejected the reported N2.8 trillion as the verified and final settlement of legacy debts owed to electricity generators, calling it inaccurate, misleading, and unsupported by any official reconciliation process.
A prior tripartite reconciliation in 2025 led President Tinubu to approve N4 trillion for verified legacy obligations—a figure GenCos relied on in good faith—and no new, legitimate process has overturned or reduced that commitment to N2.8 trillion.
Unilateral downward revisions outside transparent, contract-based reconciliation threaten market confidence and the stability of Nigeria’s power sector.
