The Association of Power Generation Companies has firmly dismissed claims attributed to presidency sources that ₦2.8tn represents a newly verified and final settlement of legacy debts owed to electricity generation companies, describing the assertion as inaccurate and misleading.
In a statement titled “APGC Position on Misleading Reports Regarding GenCos’ Debt Reconciliation,” released on Monday in Abuja, the association’s Chief Executive Officer, Joy Ogaji, said the report did not reflect the outcome of any officially concluded reconciliation process and called on those responsible for the claim to publicly disclose how the figure was derived.
“We categorically reject recent media reports suggesting that N2.8tn represents a newly verified and final settlement of GenCos’ legacy debts. The report is completely inaccurate. It is fake news,” Ogaji said.
Earlier on Monday, it was reported that President Bola Tinubu had approved the payment of ₦2.8tn to power generation companies as the Federal Government’s verified liability for accumulated electricity subsidies dating back to 2010.
The report, which cited senior officials in the Presidency and the Federal Ministry of Power who were said to have direct knowledge of the negotiations, stated that the President declined the ₦6tn claim submitted by the operators and maintained that no amount beyond the audited figure would be paid.
“The President has approved an amount. The audit has shown that it is N2.8tn, and it has been brought to the President for approval, and the President has approved it. And then he said he is not going to pay one naira more than that. So that is what the Federal Government is accepting as liability,” the source said.
Responding to the development, the APGC CEO challenged the unnamed presidency sources referenced in the report to make their audit findings public.
“Those Presidency sources should come out openly. I dare them. Publish your audit report. Why hide to throw stones? Issue a formal press release explaining how you arrived at that figure.
“There is a clear demonstration of poor understanding of the debt structure and how these obligations accumulated,” she added.
Ogaji explained that the outstanding liabilities arose strictly from bilateral commercial agreements executed within the framework of the Nigerian Electricity Supply Industry.
She stated that the debt amount is determined through a verifiable process that captures the metered megawatts generated by GenCos, the energy dispatched to the national grid, invoices issued in line with market rules, and settlement reports from the Nigerian Bulk Electricity Trading Plc.
“The outstanding obligations to Generation Companies arose strictly from bilateral commercial agreements executed within the Nigerian Electricity Supply Industry framework. These are not unilateral claims. They are contractual liabilities resulting from power generated, dispatched, and consumed under regulated tariffs. Can the process of obtaining metered MW generated by the GenCons be included here?
“Can the process of obtaining metered MW generated by the GenCons be included here? Any reconciliation or audit of these obligations must be conducted transparently and in accordance with the provisions of those bilateral agreements.
“The energy generated by GenCos is metered and documented. The megawatts generated and dispatched to the grid are captured under established market procedures. These form the basis of invoices rendered under bilateral agreements. So any suggestion that figures are arbitrary is incorrect,” she stated.
She emphasised that any reconciliation or audit of the liabilities must be carried out transparently and in line with the contractual agreements governing the electricity market.
“As at December 2025, no further reconciliation meeting had been convened by NBET following the March 2025 tripartite reconciliation exercise,” she disclosed.
Ogaji further 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, Tinubu approved ₦4tn in recognition of verified legacy obligations.
“It is on record that after a tripartite reconciliation involving GenCos, NBET, the Ministry of Finance, and the Office of the Special Adviser on Energy, His Excellency approved N4tn in recognition of verified legacy obligations. That commitment was made following due process and formal engagement,” she said.
She noted that GenCos took part in the reconciliation process in good faith and subsequently engaged financial institutions, gas suppliers, and investors based on that commitment.
“Financial institutions, gas suppliers, and investors were engaged based on that understanding. Revising figures outside the established reconciliation framework undermines market confidence and contractual sanctity,” Ogaji warned.
She maintained that APGC remains confident in the President and expects that subsequent engagements will be conducted transparently and within the framework of the bilateral agreements guiding the electricity market.
The APGC CEO also attributed the ongoing liquidity challenges in the power sector to structural issues rather than arbitrary claims by generation companies.
“GenCos participated in good faith. Financial institutions, gas suppliers, and investors were engaged based on that commitment. Revising figures outside the established reconciliation framework undermines market confidence and contractual sanctity. The liquidity crisis in the sector is rooted in: Tariff shortfalls under regulated pricing, Market settlement deficits, Foreign exchange exposure, and accumulated unpaid invoices. These are structural market realities, not arbitrary demands,” she said.
Nigeria’s power sector has continued to struggle with rising debts owed to generation companies since the privatisation of the industry in 2013.
GenCos have repeatedly cautioned that delayed payments from NBET and distribution companies have limited their capacity to meet obligations to gas suppliers and service lenders, raising concerns about the sustainability of power generation.
Liquidity constraints within the Nigerian Electricity Supply Industry have increased over the years due to non-cost-reflective tariffs, foreign exchange volatility, and persistent settlement gaps.
Against this backdrop, Ogaji stressed that any attempt to alter previously reconciled figures without formal engagement could undermine investor confidence at a time when the sector urgently requires capital injection and stability.
“APGC maintains confidence in the President and in the integrity of the July 2025 engagement. We expect that all further discussions will be conducted transparently and within the framework of the bilateral agreements governing the market,” she added.
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