Power generation companies in Nigeria have raised fresh concerns over the Federal Government’s ₦3.3 trillion electricity sector debt, asking President Bola Ahmed Tinubu to clarify how the figure was calculated.
Industry Questions Debt Calculation
The concerns were voiced by operators under the Association of Power Generation Companies (GenCos), who say the reported debt figure does not align with previously reconciled records. According to industry stakeholders, the last reconciliation exercise between GenCos and government agencies was concluded around March 2025, making the new ₦3.3 trillion figure unclear.
Speaking during an interview, GenCos representatives emphasized the need for transparency, noting that understanding how the debt was computed is critical for trust and future collaboration. “We need to understand how this ₦3.3 trillion was computed,” a key industry voice stated, highlighting discrepancies between earlier agreed figures and the newly announced settlement.
The development comes shortly after the Federal Government approved the ₦3.3 trillion payment plan aimed at clearing legacy debts accumulated between 2015 and 2025 in the power sector.
Concerns Over Sector Stability
While the government maintains that the debt settlement will stabilize electricity supply and restore investor confidence, GenCos warn that unresolved discrepancies could undermine the process. Industry players stress that accurate debt reconciliation is essential to ensure fairness and prevent further financial disputes.
The power sector has long struggled with liquidity challenges, with debts owed to generation companies and gas suppliers affecting operations and limiting investment. Experts say transparency in the repayment plan will be key to unlocking new capital and improving electricity generation nationwide.
As discussions continue, stakeholders are calling for clearer communication between the government and industry operators to ensure the reform achieves its intended impact—delivering reliable power while maintaining investor confidence in Nigeria’s energy sector.
