- FG re-approves ₦3.3tn for power sector debt, but payments remain delayed, drawing scepticism from industry stakeholders and the public.
- Debt figures and repayment execution face criticism, as GenCos and gas suppliers highlight gaps, inconsistencies, and growing outstanding obligations.
The Federal Government has renewed approval of ₦3.3tn to settle longstanding debts in the power sector, yet power generation companies report they have not received payments. Officials had previously announced the same sum nearly two years ago, sparking questions over transparency and accountability.
In May 2024, the Minister of Power stated that President Bola Tinubu approved gradual repayment of over ₦3.3tn owed to power generation companies since 2015. The plan included ₦1.3tn in cash and promissory notes for GenCos, and $1.3bn for gas companies, funded via cash and future royalties. Gas suppliers had cut supply to power plants in early 2024 due to unpaid legacy debts, causing widespread outages.
The minister emphasised that cash injections would cover part of the ₦1.3tn debt, while the remainder would be settled through promissory notes. He also confirmed that most power companies had signed off on reconciled debt figures, with the government engaging remaining companies to ensure full agreement.
On April 6, 2026, the presidency reiterated that Tinubu approved the debt repayment plan under the Presidential Power Sector Financial Reforms Programme. The Special Adviser to the President on Information and Strategy, Bayo Onanuga, said ₦3.3tn represents a final settlement following verification of debts accumulated from February 2015 to March 2025. Implementation began with 15 power plants signing settlement agreements totaling ₦2.3tn. The government has raised N501bn to fund payments, disbursing ₦223bn so far, with additional payments underway.
Despite these announcements, stakeholders question the delay. The Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, expressed doubts over the ₦3.3tn figure, citing previous approvals of ₦2.3tn, ₦2.8tn, and ₦4tn in July 2024. She highlighted that gas suppliers have halted supply due to debts owed by GenCos, deepening power shortages.
Ogaji noted that the government owes GenCos about ₦6.8tn, with 70% relating to thermal plants. She warned that unless GenCos settle their obligations, gas companies may not resume supply. She also explained that monthly shortfalls of N200bn contribute to the growing debt, which could reach ₦7tn by March 2026.
In January, the government issued a ₦501bn Power Sector Bond under the Presidential Power Sector Debt Reduction Programme, allowing five generation companies, First Independent Power Limited, Geregu Power Plc, Ibom Power Company Limited, Mabon Limited, and Niger Delta Power Holding Company Limited, to execute settlement agreements totaling ₦827.16bn, payable in four instalments. As of March, Ogaji reported no payments had been received.
The repeated announcements triggered public scepticism. Social media users criticised the government for a lack of transparency. Bolaji Abdullahi called it a cover-up on X (formerly Twitter). Others, including users @dxpo, @E_berekz, and @Winose, questioned the rationale and credibility of the policy, arguing that debt repayment alone would not address structural issues in the power sector.
Public frustration reflects growing uncertainty in the electricity market. Industry experts warn that delayed debt settlement could further disrupt gas supply and worsen Nigeria’s nationwide power shortages.