The Federal Government’s renewed approval of N3.3tn to settle long-standing power sector debts has ignited fresh controversy, with power generation companies (GenCos) saying they have yet to receive payments despite similar promises made nearly two years ago. The approval, announced under President Bola Tinubu’s administration, is intended to clear debts accumulated since 2015, but industry insiders argue the move comes too late as Nigeria’s power supply continues to falter.
In May 2024, the Minister of Power announced a plan to pay N1.3tn owed to GenCos through a combination of cash injections and promissory notes, while about $1.3bn owed to gas suppliers would be settled via cash and future royalties. At the time, unpaid debts had already caused gas companies to cut supply to thermal plants, plunging parts of the country into darkness. Officials assured that payments would be made in phases over two to five years, but many of these commitments have yet to materialize.
The latest statement from the presidency on April 6, 2026, confirmed that N3.3tn had been approved as a full and final settlement under the Presidential Power Sector Financial Reforms Programme. According to Bayo Onanuga, the President’s Special Adviser on Information and Strategy, implementation has begun, with 15 power plants signing agreements totaling N2.3tn. Of the N501bn raised for disbursement, N223bn has already been released, with further payments underway.
However, GenCos remain skeptical. Joy Ogaji, CEO of the Association of Power Generation Companies, questioned the basis of the N3.3tn figure, claiming the total debt owed to GenCos and gas suppliers has grown to about N6.8tn. She noted that past announcements fluctuated between N2.3tn and N4tn, creating uncertainty in the sector. Ogaji also warned that gas companies may halt supply to thermal plants if payments are not made promptly, potentially worsening nationwide power shortages.
The presidency’s announcement has sparked widespread debate on social media, with critics questioning the government’s transparency and accountability. Users argue that debt repayment alone cannot resolve structural issues in Nigeria’s electricity sector, urging investment in grid infrastructure and long-term solutions. Meanwhile, stakeholders warn that failure to implement the debt settlement effectively could further strain gas supply and deepen the ongoing power crisis.
source: punch