The FG GenCos electricity debt dispute has intensified as the Federal Government and power generation companies disagreed over the reconciliation of outstanding electricity debts, with both sides presenting conflicting figures.
The disagreement highlights ongoing challenges in Nigeria’s power sector, particularly around financial transparency and settlement of legacy obligations.
Nigeria’s electricity sector has long struggled with liquidity challenges, driven by unpaid subsidies, tariff shortfalls, and delays in settling obligations to generation companies.
These financial gaps have affected the ability of operators to invest in infrastructure and maintain stable power supply.
The FG GenCos electricity debt dispute reflects broader concerns about the accuracy of debt figures and the reconciliation process.
Over the years, disagreements over verified liabilities have slowed reform efforts and created uncertainty for stakeholders across the power value chain.
Minister of Power, Adebayo Adelabu, stated that the actual debt owed to generation companies may be lower than widely reported figures.
He explained that ongoing reconciliation efforts suggest the government’s liabilities could settle at about N4tn, rather than the N6.3tn often cited in industry discussions.
Adelabu further clarified that a significant portion of the debt relates to gas supply, which is essential for electricity generation. “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,” he said.
However, generation companies rejected the government’s position, insisting that the reconciliation must involve all stakeholders and reflect mutually agreed figures.
The Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, questioned the basis of the government’s figures. She emphasised that reconciliation should be a joint process involving all parties.
“We are talking about a bilateral agreement, which means reconciliation of figures should be done by all parties,” Ogaji said.
She added that the last reconciliation meeting involving all stakeholders took place in March 2025, and no subsequent session had been held.
“I spoke with the GenCos, and they confirmed that after the March reconciliation, no other reconciliation has been done. So how did the government get its figures from?” she asked.
The FG GenCos electricity debt dispute underscores persistent structural challenges in Nigeria’s electricity market.
Disagreements over debt figures can delay payments, weaken investor confidence, and limit the sector’s ability to attract new capital.
For businesses and households, unresolved financial issues within the power sector often translate into unstable electricity supply and higher reliance on alternative energy sources.
The dispute also highlights the need for improved data transparency and coordinated engagement among stakeholders. A clear and jointly verified debt position is critical for restoring trust and ensuring effective policy implementation.
