Electricity generation companies have raised concerns that the Federal Government is yet to commence payment of the N3.3tn debt reportedly approved by President Bola Tinubu in April, despite earlier assurances that settlement had already begun.
The GenCos, operating under the Association of Power Generation Companies, also faulted the government’s review of the sector’s debt downward from about N4tn to N3.3tn, insisting that the full amount remains unpaid.
Speaking during a webinar organised by the association on Monday, the Chief Executive Officer of APGC, Joy Ogaji, said no disbursement had been received by most power producers under the proposed settlement plan.
She explained that the figures surrounding the debt had shifted repeatedly over time, adding that operators were yet to see any actual payment despite official announcements.
“At different times, the government has presented different figures—N2.3tn, then N2.8tn, and later N3.3tn—but as we speak, no GenCo has received a kobo,” she said.
Recall that presidential spokesperson Bayo Onanuga had announced in April that President Tinubu approved a debt settlement plan under the Presidential Power Sector Financial Reforms Programme.
He had stated that the government reached a N3.3tn agreement as full and final settlement of verified legacy debts accumulated between 2015 and 2025, with implementation said to have begun alongside partial financing arrangements.
However, Ogaji maintained that generation companies had not benefited from any disbursement under the arrangement.
She also noted that a previously issued N501bn bond meant to support the payment process was still being gradually disbursed.
According to her, “Even the bond raised earlier is still being paid in tranches, and the process is far from completion.”
Ogaji further stated that GenCos have not accepted the N3.3tn figure, arguing that reconciliation with gas suppliers placed total obligations at over N4tn.
She added that gas suppliers had also rejected any attempt to reduce what is owed, insisting on full payment of contracts already executed.
Ogaji revealed that only a handful of generation companies agreed to participate in the government’s bond scheme, including Geregu Power, Ibom Power, FIPL, NDPHC, and Mabon Energy.
She stressed that those firms were the only ones currently receiving any form of payment under the arrangement.
Meanwhile, earlier government updates had indicated that some settlement agreements had been signed under the debt reduction programme, with selected firms agreeing to structured repayment plans.
Despite this, the GenCos insist that outstanding debts remain unresolved and continue to grow, raising fresh concerns aboutliquidity in the power sector.