The Federal Government of Nigeria and power generation companies are at odds over the actual amount owed within Nigeria’s electricity sector, as both sides present conflicting figures.
The Minister of Power, Adebayo Adelabu, said the government’s debt to generation companies may be lower than widely reported. According to him, ongoing reconciliation suggests the figure could be around N4tn, rather than the N6.3tn often mentioned.
Speaking during a press briefing in Abuja, Adelabu explained that earlier estimates had already been adjusted. He noted that an initial N4tn figure was reduced to about N2.8tn after auditing, due to changes related to interest and foreign exchange components.
He added that discussions are still ongoing with some generation companies, and the final figure will only be confirmed after the reconciliation process is completed. The minister also revealed that more than 60 per cent of the debt is linked to gas suppliers, whose services are essential for electricity generation.
Adelabu used the opportunity to apologise to Nigerians over ongoing power outages, assuring that efforts are being made to stabilise the sector.
However, power generation companies have rejected the government’s position, insisting that any reconciliation must involve all stakeholders.
The Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, questioned how the government arrived at its figures, noting that the last joint reconciliation meeting was held in March 2025.
She stressed that no new reconciliation has taken place since then and called for transparency in the process. Ogaji also argued that accurate figures can only be determined through a joint verification involving all parties.
According to her, the debts claimed by generation companies include unpaid invoices, capacity charges, foreign exchange differences, taxes, and other operational costs accumulated over several years.
