A fresh disagreement has emerged between the Federal Government and power generation companies (GenCos) over the actual debt owed within Nigeria’s electricity market, with both sides presenting conflicting figures on outstanding liabilities.
Minister of Power, Adebayo Adelabu, said ongoing reviews suggest that the government’s debt to GenCos may be far lower than the N6.3tn widely circulated in industry discussions.
Speaking at a press briefing in Abuja, Adelabu said the figure is likely to settle around N4tn once reconciliation is completed.
“You asked how much we owe suppliers. The amount is still being reconciled,” Adelabu said.
“As of the end of 2024, the audited and agreed figure was about N2.8tn because of interest and foreign exchange components.
“While some GenCos have agreed to this, discussions are still ongoing with others. So the final reconciled figure may be around N4tn.”
He added that more than 60 per cent of the liabilities relate to unpaid gas supply invoices, a critical input for power generation.
But the GenCos rejected the minister’s position, insisting that no new reconciliation has taken place since a joint meeting in March 2025.
The Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, challenged the basis of the figures cited by the government.
“We are talking about a bilateral agreement. Reconciliation must involve all parties,” Ogaji said.
“We want the government to publish how it arrived at those figures. The last reconciliation meeting held with all stakeholders was in March 2025. So when was the new reconciliation done?”
Ogaji questioned the reliance on the Nigerian Bulk Electricity Trading Plc (NBET) alone for data, stressing that only a joint verification can determine accurate debts.
She said GenCos’ claims include multiple cost components often ignored in public discussions, such as unpaid invoices since 2015, capacity and deemed capacity payments, forex differentials, start-up and shutdown costs, NIBOR-plus-4 per cent interest on arrears, and past VAT charges on gas.
She also highlighted additional losses from low plant utilisation caused by gas shortages and grid constraints, and unremunerated ancillary services such as spinning reserve, black start capability, and running in Free Governor Mode, which accelerates wear on equipment.
The dispute comes at a time when the government is attempting to stabilise the electricity market and address liquidity pressures that continue to cripple the sector. It also follows President Bola Tinubu’s approval of N2.8tn as the verified portion of legacy debts owed to GenCos—an amount a senior government official said represents the audited and validated liability so far.
While the conflicting figures hint at a brewing face-off between the government and operators, analysts say the situation also offers an opportunity to strengthen transparency, rebuild financial discipline, and attract new investments into the power sector.
Despite ongoing reforms, the industry continues to struggle with legacy debts, tariff deficits, and operational inefficiencies—challenges that have hindered reliable electricity supply across the country.
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