The Federal Government and power generation companies have disagreed over the reconciliation of debts in Nigeria’s electricity market, with both sides offering differing accounts of the actual liabilities owed to the GenCos.
The Minister of Power, Adebayo Adelabu, said the actual debt owed to generation companies may be significantly lower than widely reported, as ongoing reconciliation efforts continue to clarify obligations within the sector. He said the government’s liabilities to generating companies could settle at about N4tn, rather than the N6.3tn figure often cited in industry discussions.
Adelabu made this known during a recent question-and-answer session at a press conference in Abuja, where he also apologised to Nigerians for the persistent power outages across the country.“You asked how much we owe suppliers. I can tell you that the amount we owe GenCos is estimated and is still being reconciled,” the minister said. “When we said N4tn as at the end of 2024, it was audited and agreed at about N2.8tn because of the interest elements and the foreign exchange components embedded in it.
“A number of the GenCos have agreed, while some are still discussing back and forth. But now that we are talking about N6tn for the generating companies, by the time reconciliation is concluded, it will probably be around N4tn total.”
He further explained that a large portion of the obligations relates to gas supply, which underpins electricity generation in the country. “What I can tell you is that a proportion of this, which is not less than 60 per cent, is being owed to gas suppliers. So I hope that is clear,” Adelabu added.
However, power generation companies faulted the government’s position, insisting that the reconciliation process must involve all stakeholders and reflect agreed figures.Responding to the minister’s comments, the Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, called for more clarity on how the figures were derived, while reaffirming the need for a comprehensive reconciliation involving all parties.