A sharp conflict has emerged between the Nigerian government and electricity generation companies regarding the total outstanding debt in the power sector. While the federal administration claims to be clearing arrears totaling N4 trillion, the Generation Companies (GENCOs) assert that the actual debt figure is N7 trillion and that no significant payments have reached them yet.
Representing the government at the Nigerian-British Chamber of Commerce Energy Day 2026, Special Adviser to the President on Oil and Gas, Olu Verheijen, explained that the administration is working to fix the gas-to-power supply chain. She noted that the Federal Executive Council authorized a bond program worth N4 trillion to handle verified debts. According to Verheijen, agreements totaling N2.28 trillion have been finalized, with a bond series already issued and payments currently in progress.
Conversely, Joy Ogaji, the CEO of the Association of Power Generation Companies, disputed these figures. She argued that the sector is owed more than N7 trillion, with a mounting monthly shortfall of N200 billion. Ogaji clarified that while N4 trillion is attributed to legacy debt from 2015 to 2024, the total amount has continued to swell. She emphasized that GENCOs receive only about 35 percent of their monthly invoices, which severely hinders their ability to maintain equipment or pay gas suppliers.
The current situation highlights a deep liquidity crisis within the Nigerian Electricity Supply Industry. Although the country possesses an installed capacity of 15,500 MW, infrastructure limitations often restrict the grid to delivering only 3,000 to 4,500 MW. The GENCOs maintain that without full payment for power already supplied, the industry’s operational viability remains at risk.
