Fresh tension has erupted in Nigeria’s fragile power sector as the Federal Government of Nigeria under Bola Ahmed Tinubu openly disagreed with power generation companies over the actual size of debts owed, with figures ranging from N6 trillion to as low as N4 trillion, deepening uncertainty across the electricity industry.
The Minister of Power, Adebayo Adelabu, disclosed during a press briefing in Abuja that the widely reported N6 trillion debt may be significantly lower once reconciliation is completed.
According to Adelabu, the figures currently being circulated remain estimates and are still undergoing verification.
“You asked how much we owe suppliers. I can tell you that the amount we owe GenCos is estimated and is still being reconciled,” the minister stated.
He further explained that previous figures had already been revised downward following audits and adjustments involving interest rates and foreign exchange components.
“When we said N4 trillion as at the end of 2024, it was audited and agreed at about N2.8 trillion because of the interest elements and the foreign exchange components embedded in it,” Adelabu revealed.
The minister added that ongoing discussions with power generation companies could ultimately reduce the latest N6 trillion claim to around N4 trillion.
“A number of the GenCos have agreed, while some are still discussing back and forth. But now that we are talking about N6 trillion for the generating companies, by the time reconciliation is concluded, it will probably be around N4 trillion total,” he said.
Adelabu also disclosed that a significant portion of the debt more than 60 percent is tied to gas supply obligations, a development that further complicates the sector’s already strained financial structure.
“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 added.
However, the power generation companies strongly rejected the government’s position, demanding transparency and inclusive reconciliation involving all stakeholders.
The Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, questioned the government’s methodology and called for public disclosure of how the figures were derived.
“We are talking about a bilateral agreement, which means reconciliation of figures should be done by all parties,” Ogaji insisted.
She further revealed that the last joint reconciliation meeting between stakeholders took place in March 2025, adding that no new reconciliation had occurred since then.
“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.
Ogaji also criticized reliance on a single institution for determining debt figures, raising concerns about transparency in the reconciliation process.
“How can Nigerian Bulk Electricity Trading Plc be the only source? Invoice settlement is done by market operations; NBET only pays. The true figures can only emerge after a proper reconciliation. What are we turning the sector into?” she queried.
The disagreement highlights the deepening liquidity crisis in Nigeria’s power sector, where mounting debts have continued to affect electricity generation, gas supply, and investor confidence.
Industry experts warn that unresolved financial disputes between the government and GenCos could further worsen power supply challenges nationwide, potentially leading to reduced generation capacity, operational shutdowns, and increased electricity tariffs.
The ongoing standoff also raises broader concerns about the sustainability of Nigeria’s electricity market, which has struggled for years with funding gaps, infrastructure deficits, and policy inconsistencies.
As reconciliation talks continue, stakeholders across the sector are watching closely, as the outcome may determine whether Nigeria’s power industry stabilizes or slides deeper into crisis.