Association of Power Generation Companies (APGC) has dismissed reports suggesting that the federal government has approved or completed a N2.8 trillion settlement of legacy debts owed to power generation companies, describing the claims as false and misleading.
Gatekeepers News reports that in a statement issued on Monday, Joy Ogaji, chief executive officer of APGC, said there had been no verified or final agreement on such an amount, contrary to media reports linking the payment approval to President Bola Tinubu. She insisted that the circulating figures did not reflect any concluded reconciliation or official settlement process.
“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.
She explained that the outstanding debts were generated from formal bilateral contracts within the Nigerian Electricity Supply Industry framework, stressing that the liabilities arose from electricity that was generated, transmitted, and consumed under approved tariffs. According to her, the obligations are contractual and not arbitrary claims by power producers.
Ogaji noted that all reconciliations and audits of such debts must follow transparent processes and be conducted strictly in line with contractual agreements. She added that no further reconciliation meetings had been convened by the Nigerian Bulk Electricity Trading Plc (NBET) after the tripartite exercise carried out in March 2025.
She recalled that in July 2025, a comprehensive reconciliation involving GenCos, NBET, the Ministry of Finance, and the Office of the Special Adviser on Energy resulted in the approval of N4 trillion as verified legacy obligations. According to her, the approval was reached after extensive consultations and due process.
“It is on record that in July 2025, after a tripartite reconciliation involving GenCos, NBET, the Ministry of Finance, and the Office of the Special Adviser on Energy, His Excellency approved N4 trillion in recognition of verified legacy obligations,” Ogaji said.
She stated that financial institutions, gas suppliers, and investors had already been engaged based on that agreement, warning that altering the figures outside the reconciliation framework could weaken market confidence and undermine existing contracts.
Ogaji also pointed out that the persistent liquidity crisis in the power sector is driven by tariff shortfalls, market settlement gaps, foreign exchange exposure, and the accumulation of unpaid invoices, describing these as deep-rooted structural challenges rather than unreasonable demands by generation companies.
She reaffirmed the confidence of GenCos in President Tinubu and the integrity of the reconciliation process, adding that future discussions must remain transparent and guided by contractual agreements.
Federal government had earlier announced plans to raise N1.23 trillion by the first quarter of 2026 to clear verified debts owed to GenCos and gas suppliers. On January 27, it also disclosed that it successfully issued a N501 billion inaugural bond under the Presidential Power Sector Debt Reduction Programme aimed at easing financial pressure in the electricity market.
