The Association of Power Generation Companies (APGC) has rejected media reports claiming the administration of President Bola Tinubu reduced the federal government’s legacy debt to generation firms (GenCos) from N6.5 trillion to N2.8 trillion. The industry group described the reports as false and misleading.
In a statement on Monday, APGC Chief Executive Officer Dr. Joy Ogaji categorically denied that a final, verified settlement figure of N2.8 trillion has been communicated to members. “We categorically reject recent media reports suggesting that N2.8 trillion represents a newly verified and final settlement of GenCos’ legacy debts. The report is completely inaccurate. It is fake news,” she stated.
The disputed reports followed claims that a recent audit of the power sector’s financial obligations led to the alleged debt slash. Ogaji challenged the source of these claims, demanding transparency. “Those Presidency sources should come out openly. Publish your audit report. Issue a formal press release explaining how you arrived at that figure,” she said, adding that the reports demonstrated “a clear demonstration of poor understanding of the debt structure and how these obligations accumulated.”
Ogaji explained that the N6.5 trillion figure is not arbitrary but is grounded in documented operational data. “The energy generated by GenCos is metered and documented. The megawatts generated and dispatched to the grid are captured under established market procedures. These form the basis of invoices rendered under bilateral agreements. Any suggestion that figures are arbitrary is incorrect,” she noted.
This clarification emerges amid heightened public discussion over Nigeria’s persistent power shortages and the financial strains within the sector. Just days ago, the Nigeria Labour Congress (NLC) and GenCos publicly disagreed over the status of the debt, underscoring the complexity of the issue. The GenCos maintain that outstanding receivables for power supplied to the national grid continue to hamper operations and investment.
The dispute over the debt’s true value highlights ongoing tensions between power producers and the government regarding fiscal obligations in the industry. With many Nigerians experiencing regular blackouts, the financial health of generation companies remains a critical factor for grid stability. APGC’s statement calls for an official, transparent accounting of the liabilities, urging the Presidency to substantiate its figures through a published audit.
The next step hinges on whether the federal government will formally respond to the challenge and provide the detailed audit report referenced in the initial media claims.
