The Association of Power Generation Companies (APGC) says there has not been a N2.8 trillion verified and final settlement of the legacy debts of power generation companies (GenCos).
Reports had claimed that President Bola Tinubu approved the payment of N2.8 trillion to power generation companies.
The amount is reportedly the federal government’s confirmed debt for accumulated electricity subsidies dating back to 2010.
However, in a statement on Monday, Joy Ogaji, chief executive officer of APGC, described the reports as “completely inaccurate”.
“We categorically reject recent media reports suggesting that N2.8tn represents a newly verified and final settlement of GenCos’ legacy debts. The report is completely inaccurate. It is fake news,” Ogaji said.
Ogaji said the outstanding obligations to GenCos arose strictly from bilateral commercial agreements executed within the Nigerian Electricity Supply Industry (NESEI) framework.
“These are not unilateral claims. They are contractual liabilities resulting from power generated, dispatched, and consumed under regulated tariffs,” she said.
The CEO said any reconciliation or audit of these obligations must be conducted transparently and in line with the provisions of the relevant bilateral agreements.
“As at December 2025, no further reconciliation meeting had been convened by NBET following the March 2025 tripartite reconciliation exercise,” Ogaji said.
“It is on record that in July 2025, after a tripartite reconciliation involving GenCos, NBET, the Ministry of Finance, and the Office of the Special Adviser on Energy, His Excellency approved N4 trillion in recognition of verified legacy obligations.”
Ogaji said the commitment was made following due process and formal engagement, adding that GenCos participated in good faith.
“Financial institutions, gas suppliers, and investors were engaged based on that commitment,” she said.
The APGC executive said altering figures outside the established reconciliation framework erodes market confidence and weakens the sanctity of existing contracts.
She said the sector’s liquidity crisis stems from tariff shortfalls under the regulated pricing regime, settlement gaps in the market, foreign exchange (FX) exposure, and a buildup of unpaid invoices.
“These are structural market realities, not arbitrary demands,” Ogaji said.
She expressed confidence in the president and in the integrity of the July 2025 engagement.
Ogaji added that the GenCos expect all subsequent discussions to be conducted transparently and in accordance with the bilateral agreements guiding the market.
On December 19, the federal government disclosed plans to raise N1.23 trillion by the first quarter (Q1) of 2026 to settle verified arrears owed to generation companies and gas suppliers.
On January 27, the government said it had successfully issued a N501 billion inaugural bond under the presidential power sector debt reduction programme (PPSDRP).
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