Power Producers Dispute Government Debt Claims, Say ₦3.3 Trillion Settlement Unpaid

Electricity generation companies (GenCos) have disclosed that the federal government has not yet disbursed any funds under the ₦3.3 trillion power sector debt settlement plan approved by the presidency in April. The revelation comes despite official assurances that the implementation of the financial rescue program was already underway.

The independent power producers, operating under the Association of Power Generation Companies (APGC), have also rejected the government’s downward evaluation of the debt from ₦4 trillion to ₦3.3 trillion, maintaining that the full legacy debt remains outstanding.

Non-Payment Concerns Raised

Speaking at an industry webinar on Monday, APGC leadership revealed that the vast majority of electricity producers have not received any payments from the highly publicized intervention fund.

Industry representatives characterized the government’s official debt figures as a “moving target,” pointing out that state estimates shifted from ₦2.3 trillion to ₦2.8 trillion, and finally settled at ₦3.3 trillion. Despite these calculations, power producers insist that no disbursements have materialized under the primary settlement scheme.

The presidency had previously announced that the ₦3.3 trillion fund was a verified, final settlement for systemic debts accumulated between February 2015 and March 2025. While official statements claimed that 15 power plants had executed agreements backed by a newly raised ₦501 billion bond, power producers state that even this separate bond is still tied up in prolonged disbursement processes.

Upstream Pressures and Disputed Figures

The ongoing financial impasse is heavily impacted by the power companies’ obligations to gas suppliers. GenCos have refused to accept the government’s lower debt figure because their own audited liabilities to gas companies exceed ₦4 trillion.

“We engaged the gas suppliers regarding the government’s proposal to slash a significant portion of our claims, but they rejected any concessions,” an industry executive explained. “About 70 percent of the money we are requesting belongs to gas suppliers. They have no direct contract with the government and expect us to clear our debts to the last dime.”

Divided Industry Acceptance

The current debt reduction framework has split the generation sector. When the federal government introduced its initial ₦500 billion bond program—requiring power plants to accept a 50 percent haircut on current debts—the vast majority of operators flatly rejected the terms.

Only five companies accepted and signed onto the bond program:

Geregu Power

Ibom Power Company

First Independent Power Limited (FIPL)

Niger Delta Power Holding Company (NDPHC)

Mabon Energy

While these five operators are reportedly receiving phased payments under their specific ₦827.16 billion negotiated settlement, the rest of the generation sector remains unpaid. Industry representatives warn that the total outstanding debt has now surpassed ₦7 trillion and continues to escalate, threatening the overall stability of the national grid.