Power Companies Demand Explanation on ₦3.3 Trillion Debt Plan

Power generation companies in Nigeria have expressed concern over the Federal Government’s recently announced ₦3.3 trillion debt settlement plan for the electricity sector, stating that they have yet to receive any payments despite earlier promises.

The Presidency recently confirmed that President Bola Tinubu approved a repayment strategy to resolve outstanding debts in the power sector accumulated over the last decade. Implementation has begun, with some power plants entering settlement agreements and partial payments made, but GenCos say the actual payment process remains unclear.

Leaders of the Power Generation Companies (GenCos) argue that the new debt figure is inconsistent with previously reconciled amounts and insist that the total owed—especially to generation firms and gas suppliers—is significantly higher than the current number presented.

Unpaid obligations have affected electricity supply, with some gas suppliers reducing output due to unsettled bills. Industry stakeholders are urging the government to provide a clear breakdown of the debt components, including generation, gas supply, and other value‑chain obligations, to restore confidence in the settlement process.