Dispute Escalates Between Government and Power Firms Over Electricity Debt

The Federal Government is currently in a dispute with electricity generation companies over the size of outstanding debts in Nigeria’s power sector. While the companies claim the total owed has reached trillions of naira, government officials insist the figures are inflated and must be properly verified.

The disagreement centers on a backlog of unpaid invoices and subsidies linked to electricity supplied to the national grid over several years. Power producers argue that the debt—estimated by them at over ₦6 trillion—has put enormous pressure on their operations and threatens the stability of electricity generation nationwide.

Government authorities, however, maintain that audits show only a fraction of the claimed amount is legitimate, asserting that payments will be made solely based on verified records. This has led to a standoff, with both sides holding firm on their figures.

Analysts warn that the continuing disagreement could exacerbate liquidity issues in the power industry and slow down reforms aimed at improving electricity supply across the country.