APGC denies N2.8trn debt claim, insists legacy power debt approval

The Association of Power Generation Companies (APGC) has dismissed media reports suggesting that N2.8 trillion represents a newly verified and final settlement of legacy debts owed to electricity generation companies (GenCos).

In a statement issued on Monday, Joy Ogaji, the Chief Executive Officer of APGC, described the report as “completely inaccurate”.

The clarification follows an earlier publication by a local newspaper, which cited unnamed officials in the Presidency and the Federal Ministry of Power as stating that GenCos had initially demanded N6 trillion and proposed a N3 trillion federal bailout.

The report further claimed that President Bola Tinubu directed a comprehensive audit of the claims before any public funds would be approved, citing concerns over inflated documentation similar to those seen under the fuel subsidy regime.

Read also: Nigeria settles N501bn power debt as Tinubu tackles decades-old crisis

Ogaji rejected the characterisation of the liabilities as unilateral claims, stressing that outstanding payments to GenCos arise strictly from bilateral commercial agreements executed within Nigeria’s electricity market framework.

She explained that the obligations stem from electricity generated, dispatched and consumed under regulated tariffs, with output verified through metered megawatts recorded within the system.

“These are not arbitrary claims,” she said, noting that any reconciliation or audit must be conducted transparently and in line with the provisions of the governing agreements.

According to Ogaji, the last formal reconciliation exercise was held in March 2025 under a tripartite arrangement. She added that no further reconciliation meeting has been convened by Nigerian Bulk Electricity Trading Plc (NBET) since then.

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She stated that in July 2025, following a reconciliation involving GenCos, NBET, the Federal Ministry of Finance and the Office of the Special Adviser on Energy, President Tinubu approved N4 trillion in recognition of verified legacy obligations.

Ogaji said the approval followed due process and formal engagement, and that GenCos acted in good faith, with financial institutions, gas suppliers and investors relying on the government’s assurance.

She cautioned that revising figures outside the established reconciliation framework could undermine market confidence and contractual certainty in the power sector.

The APGC chief attributed the liquidity crisis in the sector to structural issues, including tariff shortfalls under regulated pricing, settlement deficits, foreign exchange exposure and accumulated unpaid invoices. She emphasised that these challenges reflect systemic market realities rather than inflated demands by operators.

Read also: Niger, Togo, others owe Nigeria $14m power debt- NERC

Ogaji also expressed concern that the newspaper headline could heighten political and contractual risk perceptions, warning that any suggestion of unilateral interference in bilateral agreements could weaken the sanctity of contracts in the electricity market.

While reaffirming confidence in President Tinubu, whom she described as an astute businessman, Ogaji said she does not expect actions that would disrupt established contractual processes.

She concluded that the publication appeared to be driven by unnamed sources and “mischief makers,” reiterating that the N2.8 trillion figure should not be interpreted as official policy or a concluded settlement.