The Federal Government’s renewed approval of N3.3tn to settle longstanding debts in the power sector has sparked fresh controversy, as power generation companies say they have not received any payments despite similar assurances made nearly two years ago.

Our correspondents report that the Federal Government has, on two different occasions, announced the approval of N3.3tn to clear the debts owed to power generation companies since 2015.

In May 2024, the Minister of Power announced that President Bola Tinubu had approved the gradual payment of power sector debts estimated at over N3.3tn. Adelabu said that about N1.3tn owed to power generation companies by the Federal Government would be paid via cash injections and promissory notes, while about $1.3bn owed to gas companies would be paid via cash and future royalties.

This was a time when gas suppliers cut supply to power plants due to unpaid legacy debts, throwing Nigerians into darkness in the first quarter of 2024. The minister said almost two years ago that the Federal Government had already commenced payment of the cash part of the N1.3tn debt owed to the GenCos and concluded plans to settle the second part via promissory notes within a timeframe ranging from two to five years.

“For the power-generating companies, the debt is put at N1.3tn. I can also tell you that we have the consent of Mr President to pay on the condition of settling the reconciliation of these debts between the government and the power-generating companies.

“And this we have successfully done, and it is being signed off by both parties now. The majority have signed off, and we are engaging others to ensure we have a 100 per cent sign-off from the power-generating companies. And the modalities for paying this will be in two ways. Of course, there will be a cash injection, an immediate cash injection.”

He added, “The government is not buoyant enough to pay down N1.3tn once and for all in terms of cash. But there is a fraction of it that will be paid in cash, while the remaining fraction will be settled through a guaranteed debt instrument, preferably a promissory note.”

In a similar development on Sunday, April 6, 2026, the presidency said Tinubu had approved the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme.

According to a statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the debt repayment plan followed the final review of the legacy debts that have beset the power sector for more than a decade.

Onanuga said the long-standing debts accumulated between February 2015 and March 2025, adding that “following verification, N3.3tn has been agreed upon as a full and final settlement.”

The statement came at a time when gas companies stopped supplying gas to thermal plants due to mounting debts. Onanuga disclosed that implementation had begun, with 15 power plants signing settlement agreements totalling N2.3tn.

“The Federal Government has already raised N501bn to fund these payments. Out of the amount, N223bn has been disbursed, with further payments underway,” Onanuga disclosed.

However, stakeholders have begun to question the delay in implementing payments as announced in 2024, wondering why the government waited until power generation fell from 5,000 megawatts in 2025 to 3,000 megawatts in the first quarter of 2026.

GenCos kick

Speaking with one of our correspondents, the Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, said she did not know how the Federal Government arrived at N3.3tn, arguing that the debt owed to the GenCos was more than that.

According to Ogaji, the Federal Government approved N4tn in July 2024 when the power producers met with the president. She expressed concern that the government had been inconsistent with the debt figure.

“I don’t know how they arrived at N3.3tn. Recall that the FG once said it was N2.3tn; later, they said N2.8tn, and now N3.3tn. We don’t know how the government arrived at that figure. Does it represent the GenCos-only invoices? Does it represent the GasCo? Does it cover 2015–2024? The questions are endless. N4tn was approved in July 2025,” she said, expressing displeasure with the figures.

Ogaji told our correspondent that gas companies have warned they will not supply unless the GenCos are ready to pay. Ogaji disclosed that gas suppliers halted supply to thermal power plants over an estimated N3.3tn debt owed by power generation companies, a development that has since deepened the nationwide power shortage.

She explained in March that the crisis stemmed from the failure of the Nigerian Bulk Electricity Trading Plc to fully pay for electricity generated by GenCos since the sector’s privatisation. According to her, the government currently owes generation companies about N6.8tn, with roughly 70 per cent of the amount relating to thermal plants.

“From 2015 to December 2024, the debt profile grew to N4tn. In each month of 2025, there is a shortfall of N200bn, so if you calculate N200bn times 12, that is N2.4tn, making the whole debt N6.4tn after December 2025. We’re already in March 2026. The debt grew to N6.6tn in January and N6.8tn in February. At the end of March, you need to add N200bn again to make it N7tn,” she said.

Ogaji added that a significant portion of the outstanding debt, N3.3tn, is owed to gas suppliers because thermal plants account for the majority of electricity generation on the national grid. Consequently, Ogaji said she would not know if the latest approval of N3.3tn was for gas companies only.

In January, the Federal Government said it took steps towards resolving Nigeria’s estimated N4tn power sector debt burden, with five power generation companies signing settlement agreements under the Presidential Power Sector Debt Reduction Programme, following the issuance of a N501bn bond.

The Special Adviser to the President on Energy, Olu Verheijen, said the bond issuance marked a decisive reset of the electricity market. She explained that the inaugural Series 1 Power Sector Bond issuance, executed by NBET Finance Company Plc, closed at N501bn, comprising N300bn raised from the capital market and N201bn allotted in bonds to participating power generation companies.

She disclosed that five generation companies operating 14 power plants nationwide—First Independent Power Limited, Geregu Power Plc, Ibom Power Company Limited, Mabon Limited, and the Niger Delta Power Holding Company Limited—have executed settlement agreements with the Nigerian Bulk Electricity Trading Plc.

According to her, the total negotiated settlement value for the five companies stands at N827.16bn and will be paid in four phased instalments.

However, Ogaji said nothing had been paid to the GenCos as of March.

Nigerians react

Meanwhile, the presidency’s latest statement has continued to draw scepticism, particularly on social media, where many Nigerians questioned whether the policy was being implemented or simply being repeatedly announced without tangible progress.

Among the critics is the National Publicity Secretary of the African Democratic Congress, Bolaji Abdullahi, who faulted the development in a strongly worded post on X (formerly Twitter).

“Two years later: After the Plateau ‘no light’ airport stopover disaster, President Bola Tinubu’s cover-up is to re-approve the same N3.3tn that he approved in May 2024. Is it that he forgot? Or is this propaganda taken too far? This affliction too shall pass,” he wrote.

Another user on the platform, identified as Dapo (@dxpo), also criticised what he described as a lack of transparency and accountability in the handling of the debt settlement.

“My major grouse with this government really is the blatant disregard for our collective intelligence. This is my report from the same announcement, made by Adebayo Adelabu in 2024. Why are they now presenting it as a new approval?” he queried.

He added, “Very poor. A better approach would be to reveal what they’ve done with the ₦3.3tn since 2024 because it was supposed to be done gradually.”

Similarly, another user, Emryz (@E_berekz), questioned the economic rationale behind the policy, arguing that debt repayment alone would not address the sector’s structural challenges.

“Paying debt does nothing… It’s not an investment. You can’t run out of debt. Put in initiatives that develop both parties. How about strengthening and revamping the national grid with such money?” the user stated.

In the same vein, @Winose accused the government of lacking credibility in its communication, pointing to the ease with which past announcements can be verified in the digital age. “But why are they fond of lies? Have they forgotten this is the digital age?” the user wrote.

Reacting, a Facebook user, Anagbogu Valentine Chigbogu, accused the government of misleading the public, writing, “Tinubu is just not human… A 419… I knew it was all to deceive the ignorant masses.”

The lingering dispute over the debt figure and delayed payments has heightened uncertainty in the electricity market, with industry stakeholders warning that failure to resolve the issue could further strain gas supply and deepen the nation’s power shortages.