FG and GenCos Clash Over Electricity Debt Reconciliation

The Federal Government of Nigeria and power generating companies (GenCos) are currently at odds regarding the reconciliation of debts within the electricity market. Minister of Power Adebayo Adelabu stated that the actual debt owed to GenCos is approximately N4 trillion, contrasting with the N6 trillion figure often cited by the industry.

During a recent press conference in Abuja, Adelabu addressed the ongoing reconciliation efforts and clarified the government's liabilities, which are expected to be settled by the end of 2024. The Minister noted that a significant portion of the obligations relates to gas suppliers, accounting for at least 60% of the debt.

Joi Ogaji, the Executive Secretary of the Association of Power Generating Companies, emphasized the need for a comprehensive reconciliation process involving all stakeholders and insisted that the figures must be verified jointly. The next reconciliation meeting is scheduled for March 2025, where further discussions on bilateral agreements will take place.