Nigeria, GenCos Clash Over Size of Power Sector Debt Amid Reconciliation Dispute

The Nigerian government and power generation companies are at odds over the actual amount of debt owed in the electricity sector, as ongoing reconciliation efforts continue to yield conflicting figures.

Minister of Power, Adebayo Adelabu, has suggested that the government’s liabilities to GenCos may be lower than widely reported, noting that the figures are still under review. According to him, debts often estimated at about N6 trillion could eventually be reconciled to around N4 trillion.

Speaking during a press briefing in Abuja, Adelabu said the amount owed remains subject to verification, explaining that earlier estimates had already been adjusted downward after audits.

“When we said N4 trillion as at the end of 2024, it was audited and agreed at about N2.8 trillion because of the interest elements and the foreign exchange components embedded in it,” he stated.

The minister further noted that discussions with GenCos are ongoing, adding that a significant portion of the debt no less than 60 per cent is tied to gas supply obligations.

However, power generation companies have rejected the government’s position, insisting that any reconciliation must involve all stakeholders and reflect jointly agreed figures.

Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, questioned the basis of the government’s claims and called for transparency. She noted that the last reconciliation meeting involving all parties was held in March 2025, adding that no fresh reconciliation has taken place since then.

“We want the government to publish how they arrived at their figures and what components formed them,” Ogaji said, criticizing reliance on a single institution for debt figures.

The disagreement highlights ongoing tensions in Nigeria’s power sector, where liquidity challenges and unresolved debts continue to affect operations and investor confidence.