The Federal Government announced in April 2026 that it had paid ₦3.3 trillion to settle power sector debts, but power generation companies (GenCos) say they have not received any money. The Association of Power Generation Companies (APGC) stated this during a webinar on Monday, with its chief executive Joy Ogaji confirming that no funds have reached most GenCos under the arrangement.
GenCos Deny Receiving Payments
Ogaji said, "From that N3.3 trillion or N2.8 trillion, to date, we have not received a dime. Nothing has been received by the GenCos." She added that the debt burden has continued to grow and now exceeds ₦7 trillion. The government had announced in April that payments had begun as part of a plan to clear electricity sector debts accumulated over a decade.
Government's Announcement
In April, presidential spokesman Bayo Onanuga announced that President Bola Tinubu had approved a plan to settle legacy debts accumulated between 2015 and 2025. The verified sum of ₦3.3 trillion was agreed upon as a full and final settlement, with 15 power plants signing agreements worth ₦2.3 trillion and ₦223 billion already disbursed. The announcement was framed as a new chapter for Nigeria's power sector.
Disbursement Delays
Ogaji revealed that the ₦501 billion bond raised to fund initial payments has not been fully disbursed, and the timeline for distribution may be stretched toward the election cycle. "I believe that they are planning the disbursement until the end of the election," she said. This is not the first time the government has promised to clear the debt; Tinubu made a similar promise in July 2025 to clear a then ₦4 trillion debt, which was never fulfilled.
Debt Continues to Grow
By February 2026, Ogaji had noted the debt had ballooned to ₦6.6 trillion due to continued underpayment. The ₦3.3 trillion figure agreed in April represents a reduction from what GenCos say they are owed, and the industry has not accepted it. Ogaji said GenCos never agreed to the lower figure because it does not account for what they owe gas suppliers. "When we reconciled our debt to the gas suppliers, we owed them over ₦4 trillion," she said, adding that gas companies are not prepared to accept any reduction.
Only Five Companies Receiving Payments
Only five generation companies—Geregu, Ibom Power, FIPL, NDPHC, and Mabon Energy—agreed to the government's bond terms and are currently receiving payments. Every other generation company is waiting. "Nothing has been done about the N3.3 trillion or the N6.8 trillion, which has now ballooned to over N7 trillion, and still growing," Ogaji said.
