Power generation companies in Nigeria have warned that the federal government has not yet released the funds it approved for clearing arrears in the electricity sector, despite a presidential decision that would have covered a significant portion of the outstanding liabilities. Dr. Joy Ogaji, chief executive officer of the Association of Power Generation Companies (GenCos), said the payment is still pending, raising concerns for cash flows and the ability of generators to sustain operations.
The alarm follows an announcement made in April 2026 by the presidential spokesperson, Bayo Onanuga, who said President Bola Ahmed Tinubu had approved N3.3 trillion for settlement of power sector debts. Ogaji argued that the government’s liability figures are not fixed and have continued to shift, describing the debt numbers as a “moving target” rather than a clearly settled balance.
Ogaji said that although the administration-approved figure of N3.3 trillion relates to arrears building up between February 2015 and March 2025, GenCos estimate the true amount owed is closer to N7 trillion. She also pointed to a separate financing effort: a bond worth N501 billion issued between December and January intended to resolve a negotiated segment of existing debt totaling N827.16 billion. In her account, that bond has not translated into payments for the generators.
According to Ogaji, only five GenCos tied to operations across 14 power plants—Geregu, Ibom Power, FIPL, NDPHC, and Mabon Energy—signed onto the bond arrangement. She said other companies were discouraged from joining because the structure required them to accept an unusually large 50 percent reduction. Ogaji added that the situation has left generators with unpaid obligations and no clear timeline for disbursement.
She said, “The last one was N3.3tn before they appointed a new special adviser on power. Now, let me tell you that from that N3.3 trillion or N2.8 trillion, to date, we have not received a dime. Nothing has been received by the GenCos.”
